Does Bitcoin's failure to penetrate the remittance market in any country make you think that Auroracoin would fail to do the same in Iceland?
I don't think there's much of an Icelandic remittance market.
It is legal to exchange the krona for AUR but illegal to exchange it for BTC?
There is no krona<=>bitcoin exchange
Do you know who controls the address containing ~40% of the AUR?
The 1 million AUR is the Auroracoin foundation. The next two biggest holders are thought to be Cryptsy and that exchange that went bust in Switzerland that I can't think of. The largest address of all is the 5 million+ coins that balduro burned after the airdrop ended.