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I'm there now on my fifth trip. You can't go wrong with anything. The hike you're doing will show you the best of the country (it's all awesome). That hike is great - that was my first trip in 2007. They do an ultra marathon there where they run it in one day. We just spent four days in grundafjordur on the snaefellsnes peninsula which was really great and about a two hour drive from Reykjavik. The south is great too. I'd say no matter what you see you will have fun. Bring a bathing suit and go at least once to a public pool to get a slice of local life. Be ready for everything to be super expensive. It's like $50 for two people for a basic lunch pretty much anywhere. Beers are $11-$20 depending on where and what you like. I just had a $14 beer at mikkeler and friends and it was the cheapest large beer they had.
I'd also say just try not to pack too much in. It's all weird and beautiful so you don't need to travel much to see lots of great stuff and you don't want to be in a car the whole time.
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