Yep. For comparison, there are 53 incorporated cities in the United States that have a greater population than all of Iceland (372,520). If you expand it to metropolitan areas, it's 147.
Edit to expand: 37 of the 50 United States have a greater land area than Iceland too. So Iceland is pretty small in both regards.
Edit to expand: 37 of the 50 United States have a greater land area than Iceland too. So Iceland is pretty small in both regards.