Could Iceland really become an “Information Haven”?

The most exciting news of recent weeks (slightly underplayed by the Guardian which had the scoop) is the news that a group of freedom of information campaigners are planning to turn Iceland into a haven for free speech.
This is potentially an extraordinary idea. Iceland would attract media organisations and start-ups by protecting them from censorship and aggressive libel laws such as those we have in Britain. There is a great piece by Wikileaks editor Julian Assange on the Organgrinder blog in The Guardian.
The nub of the proposition is this:
“In my role as Wilkileaks editor, I’ve been involved in fighting off more than 100 legal attacks over the past three years. To do that, and keep our sources safe, we have had to spread assets, encrypt everything, and move telecommunications and people around the world to activate protective laws in different national jurisdictions. We’ve become good at it, and never lost a case, or a source, but we can’t expect everyone to make such extraordinary efforts.