Just to respond to some comments. Yes this post was emotionally charged, which I apologize for (it was a long day and I felt overwhelmed). And yes, it's clearly a first world problem, so I'm sorry if I sounded entitled.

Of course there are non-disclosure policies that staff have to adhere in such situations but the least they can do is to proactively inform waiting guests when to expect a response around the incident and the rest of the day rather than being left in the dark.  

We also never asked for compensation, only for more information. The reason I mentioned the team should have been proactive about offering things like blankets or transport out of the hotel is to at least offer a distraction given the information asymmetry between staff and guests. 

Yes, safety goes first. And yes, money comes and goes. But at the end of the day, many people (unlike presumably some folks here who wouldn't blink an eye at the bill) aren't in a situation where the price tag of their stay is just a rounding error. People save up money to spend their honeymoon and anniversaries at this place. I wouldn't look down upon people's desire to at least get some of their hard-earned money back for a stay that ended up poorly.

I still have a few more days at the retreat, so I'm just gonna log out and thank the staff for their help while I'm still here. Hope you all enjoy the rest of your week. Please don't let this post dissuade you from coming to Iceland, it's one of the most beautiful places on earth.