You are correct, that Iceland is much closer to Malta and Luxembourg, than to the Lichtenstein, etc. That was somewhat polemical of me.

My major problem is with expansion in general. We do not know how the EU should look like in the future and even supporters of the Lisbon Treaty (like me) have to acknowledge that it is not a particularly inspired document and will clearly not be the last. Adding more countries guarantees that it will become impossible to change anything in the future.