Did KEF-OSL in C recently, I think there was 2 or 3 rows C, just me and one other passenger, then a few Y rows followed by heavily loaded M (was saturday or sunday). Service in C is hot meal and spirits but nothing special. If I remember right this is 737-800 packed in the back so crew was more or less busy with BOB in M. They were not really asking "anything else, Sir" but anyway quickly responding for any drinks etc you ask for.
Icelandair lounge at KEF is quite nice with good selection of food and drinks. Pity Icelandair flights are not elegible for EB, they have much better real C-class 2+2 layout on 757. Actually it was about connection to take in OSL, otherwise I would fly Icelandair all the way despite EB points.