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please advise on 9 days in Iceland

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I am in the initial stage of planning a trip to Iceland in the middle of June. So far I've just taken care of the airline's part. We are two parents and a teenager. We always travel independently and almost always rent a car (Switzerland was the only country where we used public transportation but that's another story). We love sightseeing, wild nature, light to moderate hiking and taking tons of pictures. We arrive on June 13th in the morning and fly back to US on June 21st in the afternoon which leaves us 7 full days + day of arrival + day of return. Ideally I would love us to see the whole country by following the famous Ring Road but having read and continuing reading bunch of travel reports and books I am thinking that perhaps this time we should concentrate exclusively on South Iceland. Or should we attempt more than that? In any case, what towns do you think we should use as our overnight stops?

I would appreciate your input and any suggestions.
Thanks in advance.

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