I agree, the church model needs at least a steeple or point; it looks oddly cut-off now.
This is a beautiful scene, it's just still missing something that says uniquely "Iceland" to me. The terrain in the distance helps with that, but the hazy golden light is not so typical there in my experience and understanding, and I'm also not sure about the specific foreground vegetation. If it were me I'd try making the sky a bit more blue and then maybe add some rocks in the foreground with moss on them for visual interest and Icelandic-feel.
- Oshyan