Yeah, just got off the phone--they seem to just have severely devalued the mileage earning o Iceland Air--which is too bad.
Fare was around $511 per person to SEA-KEF-CPH, but to get just 25% miles, it would have been $700 per person. To get 100%, it was $2000 per person. We flew IcelandAir a few years ago and got 50% on a reasonable fare.
Oh well... time to hit Matrix ITA and find other options for miles (and birthday ideas!).