Do not think this is a viable route as Iceland is still not cheap. I am lucky enough to go fishing up there for Salmon / Sea Trout a few times a year using Icelandic from Man, but flights are rarely full, so doubt there is much call for further flights. Night life can be quite stunning and friendly but bars / food is expensive so do not believe it will ever be a mass market. There are a few people I have bumped into on flights using this route as a cheap way to US / Canada which has always been the case since the days of the DC8 on that route but they are already covered by Icelandic service.
Regards
Mr Mac