The loss was Holland's second in qualification for Euro 2016, which has left them six points adrift of both the Czech Republic and Iceland, who currently occupy the two automatic qualifying berths.
Speaking after the final whistle in Reykjavik, Manchester United midfielder Blind urged the entire squad to have "a good look at themselves" ahead of future fixtures.
"Everyone needs a good look at themselves, to see what can be improved. It is important to win the next game, and if we keep faith, then results will follow," he told De Telegraaf. "Myself? Of course, I am very dissatisfied. This comes as a blow."
Next month, Guus Hiddink's men will take on Latvia in Amsterdam.