The hour in Iceland with an instructor is about 180 dollars in a skyhawk.
Well it's about $200 in Florida at an FBO I was in today.
Ive heard that the instruction is better and standards on training are higher in the US.
When enforced yes. However, there are such huge disparities between examiners it is impossible to say the FAA system is better, especially when it's facing overhaul right now.... there are hundreds of threads on this on PPrune - I'm surprised the thread isn't locked yet - use the search function.