It's strangely empty around Selfoss, but Ingolfur may have (accurately!) decided it's both cheaper and safer to simply wait three turns for Crowfoot (Blackfoot) and Pedro (Brazil) to garrison the region, rather than try to protect it himself.
Less efficient is his air force, which does not exist in this slide, despite cities and carriers capable of supporting a full 162 bombers. A friend of mine in the U.S. Navy (now retired) used to enjoy asking people how may aircraft carriers the United States has, just to get a sense of how much (or little) they understand about the armed forces. The answer is 10, 19 if you're willing to stretch the definition a little bit, and there are fewer in our entire world than Iceland has in this slide. Funny thing, the actual island of Iceland has long enjoyed the title of “unsinkable aircraft carrier” for its role in projecting allied air power back in World War II.
Finally, how is it possible that Iceland is getting more population out their tundra towns than the Inuit? I know they are a lot less dense, but it really feels like Eheunick is dropping the ball here.