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If you don’t like crowds, Lake Laugarvatn is a great alternative to the Blue Lagoon in Iceland. Plus you won’t have to sell a kidney to enter. “Swimming” in the lake, which is about 100 degrees, is free. I was the only one there a little before 9 a.m. when I took this photo. I came back after noon, and there still wasn’t more than a dozen people in the lake. Most were in kayaks.
The Fontana Spa is a number of pools connected to the lake. They aren’t free, but they are only about half the price of the Blue Lagoon and are likely to be far less crowded.
Horses in Iceland are not exactly like other horses. They are everywhere in Iceland (kind of like sheep and goats which were even more plentiful). Outside of the road between the KEF airport and Reykjavík, I don’t think I ever drove more than a few kilometers without seeing horses.