Interesting to see Paul Oscar included in the list alongside conventional "indie" choices like Björk and Sigur Ros. If Icelandic pop is your thing, I'd also recommend Selma Björnsdóttir, Svala, Steed Lord, Haffi Haff, Birgitta Haukdal, Regina Osk, Friðrik Ómar and Eurobandið. There's also Silvia Night, though that's a matter of taste...http://www.youtube.com/watch?v=jwXjCsN3k2M
Are you sure they are free? The albums are added to basket, which seems not to work for anyone outside Iceland anyway, saying that „Music can only be purchased in Iceland from Tonlist.is. If you are located abroad you can use IcelandicMusic.com (Eingöngu er hægt að kaupa tónlist á Tónlist.is á Íslandi).“
They're free to stream, not (AFAIK) to download.