Only homosexuals (and maybe asexuals?) would remain in the Island for more than a couple of days, given that there are only males on it. Actually, I guess almost every male in the world enjoy some form of interaction with females, so probably everyone will eventually leave if they can.
On a more serious note, I've heard an equivalent problem more tha 10 years ago, non-equivalent statement and answer, but the same reasoning behind the solution, so I'm going to guess that it is an old problem, and probably is recorded in a couple of books.
About the stranger being relevant
They know there is someone with blue eyes, and they also know everyone knows that, and they also know everyone knows everyone knows that, but blue eyed people do not not (everyone knows)99 that, because you need to see at least 100 people to be sure of that, and blue eyed people only see 99