Come on. Your problem is with disproportionality, not Iceland. I don't see why between Luxembourg (490,000), Malta (410,000) and Iceland (320,000), you want to draw the line between the latter two; and surely these differences aren't as great as with Andorra (85,000, including many non-citizens), Liechtenstein (35,000), Monaco (33,000, not even a democracy), San Marino (30,000) and Vatican (826).

Would the current number of EP seats all be apportitioned proportionally, one constituency would be for 680,000 people. All three, Luxembourg, Malta and Iceland fall below. But, a constituency 50% smaller than the average would be nothing unusual in any country-level democracy with sub-national constituencies (not to mention special seats for some minorities, f.e. Romania). So you may protest 5 seats for these three, but the right for any seat?...

As for the Council, the rotating Presidency is largely symbolic and is destined to go, while voting rights are weighted there too; while Commissioners -- so what, the problem is selection by national apportitioning in place of merit.

_{*Lunatic*, n.
One whose delusions are out of fashion.}