Are you looking to move to Reykjavik because of the dev jobs or are you saying you like the landscape that much that you are willing to learn the language to experience it full time?
Learning new languages is fun though! I think it changes the way your brain thinks.
This is the route I took last year, for similiar reasons as yourself. I'm now pursuing my Master's in CS there and having a great time.
(1) Assuming you also meet all of ÚTL's general requirements.
There’s also a full Bachelor’s program for people who have gotten the basics already. Because the baseline admission requirements are higher, I imagine it entails comparably higher amount of effort.