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Iceland in December?

Rates are reasonable and crowds are thinner, but does it make sense? :)
We have 5 days off at Christmas, which could be a magical time of year. However, we are not much for city life. Much prefer nature, caves, volcanoes and waterfalls. Love some insight in regards to things to do! Also considering other countries that offer direct or shorter flights/6 hrs or so. TIA

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