The typical Icelander, per random articles pulled from the net, is a published author, excels at chess and believes wholeheartedly in Elves. Find that last factoid a bit difficult to swallow which pushed me to ask Icelanders whether or not they believe in Elves. First lesson I learned; it is very awkward asking people if they believe in Elves.
I did though manage one such conversation with a very patient National Park ranger. His take was that Icelanders embrace Elves due to their place in folklore. Believing in Elves then is like believing in the Spirit of Christmas.
Really though what it comes down to is that there is so much in this Universe we just don’t understand. Why not just blame it on the Elves?