Is it true that Iceland was named this to distract people from immigrating there?

by RFEngineer
GrandpaJoey

Not according to the Icelanders:

"According to Landnáma (‘The Book of Settlements’), Hrafna-Flóki sailed to Iceland from Norway with his family and livestock.

Vatnsfjörður was rich in fish and the settlers were so preoccupied with fishing that they forgot to make hay for their livestock and other necessary preparations for the winter. Hrafna-Flóki’s animals died as a result and in spring the settlers decided to leave the country.

Before leaving, Hrafna-Flóki hiked up to the mountains and saw that Vatnsfjörður was filled with pack ice (other sources say he was looking at Ísafjarðardjúp). He therefore named the country Ísland (‘Iceland’) and it has been known as such ever since. Hrafna-Flóki later returned and became one of Iceland’s permanent settlers."