“Two nations live in this country — the Icelandic nation and this invisible nation.”
Huldufólk 102 is a wonderful 2006 documentary about Icelanders’ relationship with the Hidden Folk (elves, fairies) in their landscape. You can watch it online here (74 min.) Here is the trailer.
One of my favorite parts starts eight minutes in, when a primary school teacher is explaining to the kids how the elves live in a boulder.
Only one of the numerous people interviewed is obviously New Age-y, with her talk about earth chakras, etc. And there is one guy in sort-of medieval Norse garb, his cap decorated with runes, who is described in the subtitle as a “sorcerer.” (Some people are speaking English, some Icelandic with subtitles.) The rest are pretty much down-to-earth Icelanders, a couple of whom describe their own outlooks as Pagan and/or Heathen.
You have heard stories about roads being routed around “inhabited” spots? Here is a civil engineer who did it.
Also the land itself: mountains, geysers, rocky coasts, cliffs — wonderful as well.
UPDATE: Bad link to complete film now fixed.
(Hat tip to Galina Krasskova.)