>>937909>The problem with hiking the interior would be supplies (water/food etc). There are no shops on the interior and I'm not very outdoor-savy, so I think route one would be a betetr option.Not a problem, you can send supply packages to various mountain huts by bus. I walked 3 weeks in Iceland and had a great time.
Just prepare packages with food/supplies and send them to your route points. You can do this for a small fee from the main bus station in Reykjavik, the wardens on the huts will keep it in storage for you.
>pic related, the hot pool at Laugafell, fucking great!