That's really good news, Iceland (and Morocco - I always associate those two together for some reason) are becoming really popular and I think TOM will be out best bet for an Iceland route now. I hold out no hope for Easyjet trying anything, unless it's more frequencies from LGW!!!
My prediction would be in 2-3 years we'll have TOM to KEF and LS to RAK, then possibly TOM will retry AGA and I think we could see TOM/LS operating alongside each other on one or both of RAK/KEF once the first is established, ala FNC and Greek and Turkish routes where they operate alongside TOM/TCX.
It was only a matter of time before one of the major holiday companies gave Iceland a go.
Good news about Cork, hope the numbers improve. Shows that the 'Murican idea of more frequency + smaller aircraft = more passengers, doesn't always work, although I can't see why not.