Michael, you probably have already, correctly figured that December has the longest, darkest nights of the year in Iceland, so you’re definitely setting the odds in your favor in that regard. We were there in early April, at the tail end of the season as far as nighttime darkness is concerned.
We’d booked a trip that included a hot springs/steam room/sauna visit, dinner, and the Northern Lights viewing at the end. The soak was at the Fontana springs, which we thought were more “authentic” than the Blue Lagoon. The first bits were outstanding, but the cloud cover made it impossibly blue to have any clear view of the sky. We were all delivered back to our hotels earlier than expected, and no refunds or additional opportunities were offered or expected by anybody at the time.
Ours was a landbound tour, but we later learned that some others who’d done a Northern Lights tour out at sea got an opening in the clouds, and saw some, although they said it wasn’t totally spectacular, but certainly better than no lights. So overcast skies can affect things, and even if everything else is in your favor, weather or clouds could determine whether you can see Lights. Your chances in Iceland are certainly better than in North Carolina, so hope you get a good light show!
The Kerid volcano hasn’t erupted in a really long time, but you can easily walk to the edge and peer down, to the lake that’s now inside to cone. In addition to active or slumbering volcanoes, there's at least one that’s dormant (at least for now).