Thanks for the ideas!
I have changed things up a bit.
Pretty much all of you suggest that i keep the island, and thats now what i intend to do. The ice dragon is still going to be
built on the surface. My idea is that the ice dragon is guarding a small village on the green island(flying above). In stead of making a
villager trading hall, i want this village to house all my good trades. In the center of the village there is still going to be a small hole, which is the only opening to the cave.
Down here I want to build an evil 'fire dragon' (smaller than the ice dragon), that was taken prisoner and chained to the buttom of the cave by the ice dragon and village a long time ago. Depending on the space and everything, im thinking about making it so my iron golem farm is dropping all the golems down into a big 'blastfurnace' that gets heated by the flames from a very evil and nauseous dragon