Today's Booking through Thursday is a about somewhat sensitive subject, especially for non-Americans:
There aren‘t many novels of this kind available in my language (there are some, but they tend to be maudlin and I don‘t like maudlin). There is more available in the non-fiction field, but history books here mostly tend to focus on social aspects rather than on glorifying the country.
Icelanders as a tribe are a rather cynical and deprecating lot and on the occasions when it doesn‘t show in our writing it comes out in the reading instead. You will find plenty of stories of individual heroes in Icelandic literature, e.g. in the Sagas, but not much prose which I would call wholly patriotic in the "heroic glory of our nation" mould. The only glorious "heroes of our country" I can think of right now who are generally not criticised are handball player Ólafur Stefánsson and the Saga hero Gunnar of Hlíðarendi (from Njáls saga). However, if you read the Wikipedia entry on Gunnar, you will find the aforesaid cynicism at work even there (especially in the final sentence of the entry).
We tend, when being patriotic in all seriousness, to praise the natural beauty of our island, the beauty of our women and the physical prowess of our men, the purity of everything from wool to water and the ways in which we are better than other nations when looked at through the „per capita“ filter. I find this kind of discussion tends to be jingoistic in nature which is why I tend to eschew the issue.
Traditional literary patriotism is mostly found in our poetry, especially poems and verses written during the era of the 19th and 20th centuries when Icelanders were campaigning, first for autonomy and then for independence.
What I would recommend, therefore, is poetry, especially the rousing "I love my country" and "why you should love your country" poems from the second half of the 19th century up to independence (1944).