Sweden was the same way, I didn't need a Visa. I hadn't traveled in a while (2006), and I was surprised I got stamped to enter the EU in my layover in Iceland (2022) last year. Now I gotta worry about this, because I plan on visiting my folks in Sweden every few years. It doesn't seem that bad, and I have zero reason to think I'd be rejected, but it's yet another hassle even if it's only $8 (but that's fair if we're charging Europeans $21, I'd even pay $21 without complaintif it changes to match).

OMG, though... those poor Brexit bastards traveling through Iceland. Me from the US was just "stand in line, they ask why you're traveling, stamp the passport and you're on your way." Brexit folks had to go down some spiral stairs into some cave next to the elevator shaft and it looked like the passport equivalent of "the cheap stadium seats."