Yes, it is! Don't be fooled by pictures that show cataclysmic conditions around the volcano. While mother nature has put on a spectacular show and disrupted travel around the country, most Icelanders are going about their normal business.
Gunnar Jóhannesson, a travel professional in Iceland, commented recently on reports that the current Icelandic eruption could be followed by another from a nearby mountain (Katla), "From the history, from settlement time around the year of 900, there have been around 20 (said 21 or 22) eruption in the volcano Katla. The last one was 1918. These are two times when Eyjafjallajokull (the one which is active now) erupted and then Katla just after. Some experts say that from the story, Katla has always erupted together with Eyjafjallafjokull. We can consider if two times of twenty is enough reason to “decide” that Iceland will have continuous volcano activity for awhile now."
Gunnar also thinks this is a good year to visit Iceland, "From latest news, the eruption on Eyjafjallajokull seems to be slowing down. That is very good news and we do hope that from now Iceland has good spring and summer season."

So now you have even one  more reason to check out Iceland's spectacular scenery and interesting culture.