I was in Iceland a couple of months ago and we tried to see them, but failed. Got on a bus that took us to the middle of nowhere and stared at the dark sky with a bunch of other tourists. It was such a waste. Iceland, however, is amazing.
To further s land balla's post. I would not go anywhere where the focus of the trip would be to view the northern lights, however, I would go to a place where the opportunity exists to view them, simply because you could go to some amazing places. For example, I would not go to Hawaii just to see volcanic lava flow, but while I was in Hawaii, I would take the opportunity to see it.
I most likely went on the same tour as you in Iceland but i got to see it. I went in Oct. of 2006. Agreed Iceland is amazing and I plan to go back.
They are mesmerizing. Some of the most spiritual moments in my life have come while I gazed at the night sky to see the lights while listening to ambient music by Brian Eno. To see them, I recommend that you visit Scandinavian countries like Finland and Norway, western Russia, northern Canada, and Alaska. Don't go solely for the lights. Go because you want to explore the remote corners of the planet. Go because getting away from the hustle and bustle of megacities distracts you from the cold and dark beauty of space, the solar wind, and far off cosmic bodies. The lights are a bonus when you travel to these extreme-latitude regions mentioned above. Btw, you can also go far south to see the southern lights. I was at the very bottom of Argentina when I saw them there. In a way, I think I preferred them simply because the beauty of Patagonia trumps the icey, featureless desolation you see in some of the northern countries. Also, New Zealand and Tasmania are great alternatives if you want to visit Oceania.
I'd love to visit the Patagonia area and the regions around it. It's got to be among the most underrated areas on the planet in terms of beauty, ancient history, and food. Your idea of travel pretty much coincides with mine ... well, except I haven't traveled much. :grin: