Just want to chime in and say that this is a novel idea. The key word here being "IDEA".
Thank you for sharing your thoughts mate. I appreciate the fact that you really took the time to actually bring it in a decent and nice way

Yet I feel the need to respond to some of your thoughts:
What I can GUARANTEE YOU will NOT happen is that the coins will be distributed to all ICELANDERS as promised.
You seem somehow unsure of any serious effort made to try and explain the plan behind this coin, yet you manage to give an absolute guarantee to the opposite? May I ask in response to see some pictures of actual proof of that statement?
Sure there is a national ID system that "COULD" be used for verification purposes. There "COULD" be a method of checking an online form fillers IP address for Icelanders ISP's. There "COULD" be all kinds of things.... BUT all that SHOULD have been put in place BEFORE the coin was launched, and all of that WOULD have been in the media many months prior to seeing it show up only in forums that discuss bit/alt coins.
I see your doubts and understand completely how you feel. But there is another way to look at this. Compare it to bitcoin, you started your "chime" with the right word, namely IDEA! This is all de dev had to introduce. Just like Satoshi Nakamoto did with only his whitepaper of a coin, later to become Bitcoin. But the dev did far more than just that, he paved the way voor a community (I mean guy's like us) to pick it up and together with him turn it into a success! And as one of the more serious contributors to this initiative I generated the feeling of trust along the way as I became more familiar with not only the real insights of the Dev, but far more important, the insights we as a community can bring together to really make this work!
You see, this is not done by a singel Dev (team), this can only work if the community behind it puts in its share. We all like Crypto because it takes control from banks and governments and gives is to us, the community. Therefor we (the community) must take that control, rather then sitting back and wait for a Dev-team to become the next bank that is the only one in control. That is exactly why Balduro has given us all the space to create our own control!