Iceland isn't that cold but it is expensive.
But I don't really disagree with your basic point. I'd mostly rather vacation someplace and work at home. (Mostly. I have remote worked when I've had some time between trips in the same general area and I've just stayed there in between.)
Zero interest in working from a beach in SE Asia though, especially given the time zone difference from the eastern US. Though this comes from someone who has "free" lodging in my house in the US.
I would love to be able to work in SE Asia or in Iceland even... I am 100% remote, working for a US company in Mexico. The problem is Timezones, due to TZ restrictions, I can only opt to work in the Americas. So far I haven't found a country that would accept me for longish term (6 months would be the sweet spot for me) without a Visa
I've been to several countries, but not yet a world traveler. Iceland is beautiful, but I've had more fun in other countries. One of my favorite trips was riding motorcycles around in Peru's Amazon.
Give me word class beaches, great weather and cheap cost of living....South East Asia here I come!