Lovely as usual, and very typical Icelandic --- except for one thing: It is rare to see such large trees in Iceland.
My understanding is that the island was pretty well forested when the first settlers arrived, but soon the forests were cleared and the wood used for building and for fuel. And since then, the hungry, free-roaming sheep tend to keep trees from growing more than a meter or two high. When I was there in 1974, there was a "National Forest" being started, fenced off to keep the sheep out. I have a snapshot of the fence, with a sheep lying comfortably inside.
Eric, yes, the land was said to be forested in the time of the first settlers. There are clusters of 'forests' (*) in and around Akureyri and Egilsstaðir and some other areas, with serious efforts ongoing to add more forest cover. Soil erosion through wind is a significant factor.
(*) There's the well-worn joke: What do you do if you get lost in an Icelandic forest? Answer: Stand up.