A couple of things:
First of all, be quite clear that you must not leave the road in Iceland on your motorbike. They really strongly enforce this. Of course, what they call roads encompasses some pretty wild tracks that will test any rider!
But on your main question, most bikes will get you interesting places if you try hard enough. The nature of the challenge just changes: is it your own skills, your strength to pick it up again and again or even the adventure of dealing with bits falling off!
What bike have you got? ride that one.
Then again, I’m the last person anyone should listen to about appropriate bike choice ;-)
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