Bristol to Iceland would be no more an odd route than Bristol to Krakow or Prague. Iceland has tremendous tourism appeal, and is still criminally underserved from the UK.
Presuming they are to fly to Iceland from STN, this would surely spell the end of Iceland Express there, their lowest fares are more like some of EZY's highest. If it does happen, I will be the first to book. I made good use of Go's service in the old days.