DC was built on lands ceded from the states of Maryland and Virginia for the explicit purpose of creating a national capital that was neutral ground between the various states. The residents of the District are free to vote for retrocession back to Maryland if they want representation.
Anyone who's been to Iceland can see that it is not, in fact, a typical Northern European society. It really feels like a strange mix of US and EU. Besides, the north-east US states can easily be described as social democracies as well.
As EU-ropean, I'd much rather see Iceland a member, but I can see them becoming a US state or territory and it wouldn't really be that far-fetched to be honest.
The USA is entering a death spiral, you fool. Some lunatic fascist techbro openly payed his way to being the de-facto president. Get ready for an unprecedented face-fucking.