I used to frequent Iceland quite often a few years ago without any problems albeit in a slightly larger machine with 2 donkeys. I'd have no problems doing it in a (reliable) PA32 at all. Stop in Stornaway for fuel, take a decent raft, a good beacon and a GPS. I'm not sure about the survival suits though, the chances of surviving the impact aren't too great but if you do manage to get out and into the raft you'll be fine. Although the weather in Reykjavik can be horrible, they tend to have long clear spells and on my 32 visits I don't think I ever did an IFR approach through necessity. If you need any further info let me know.