It's actually super annoying that the same word "geothermal" is used for both. If I were emperor of the world, I'd ensure that the proper "ground-source heat pump" were used instead of the criminally misleading "geothermal."
Ground-source heat pumps are not energy sources, they consume energy.
What Iceland is doing is actually developing an energy source.
Reykjavík artificially adds sulfur to its hot water to reduce the corrosion of their hot water pipes.
I can't find a source for that in English but there's one in Icelandic, it's the "Vinnslutæknileg vandamál við vinnslu jarðhita" section.
1. http://web.archive.org/web/20160813045634/http://www.samorka...
Seems like Iceland could really use some sort of myth/fact information as they continue look to grow their tourism.
They have very little incentive to "correct" people
I also know some Iceland natives who actually like it, so I wouldn't completely dismiss it as a tourist trap.
https://energy.gov/energysaver/geothermal-heat-pumps
If you have an issue with how it's marketed, I'd suggest inquiring against it.
"If I were emperor of the world..."