Iceland came a win away from qualifying into the 2014 World Cup, so they are better than you'd think. The Faroes, though, that result is straight up crazy.
They are better than you'd think, but still, a country with a population half the size of Seattle shouldn't be dominating their group and beating the Czechs or the Dutch. Or the Turks, for that matter.
Other things I've enjoyed about the Euros so far: Only two of the nine groups are being led by the top-seeded side; Gareth Bale single-handedly carrying Wales to the brink of qualifying; Greece having zero wins in a weak group; Gibraltar scoring their first competitive goal...ever; Serbia being awarded a 3-0 win and simultaneously being penalized three points; Croatian/Serbian/Albanian/Montenegrin fans doing insane things in general; San Marino earning a point in Euro qualifying for the first time in 60 matches; Poland beating Germany for the first time ever; the fact that my French are automatically qualified.
Iceland won a medal at the 2008 Olympics in a team sport, which is also super impressive. And they have more published authors per capita than any other nation. And they have several musical artists who have made it big (Sigur Ros, Bjork, and Of Monsters And Men).
...and the Sugar Cubes in the pre Bjork solo era.