Wasn't that because of WOW Air?
People are upset, but with the amount of hotels that are still under construction, the problem looks to get much worse before it gets better.
That, along with Instagram, make Iceland a desirable place to visit.
They're not really selling a "stopover" so much as just convincing you to buy plane tickets for what they already cost.
Calgary to Reykjavík is 3211 miles. [1]
It's often cheaper for me to fly 3211 miles than 1675 miles.