I have a bit of experience with .is including LL.
First of all, you can still find available LL.is.
For example od.is, cd.is are still available. Safe to say that demand is not extreme.
The extension is a bit expensive strictly for speculation too.
The local market is very small.
Icelandic traffic is tough to convert.
Also be aware that letter c (along with q w z) is not part of the Icelandic alphabet but I don't think it's a real problem because Icelandic keyboards are qwerty and acronyms based on English keywords are common. CA could stand for something like computer art

(avoid computer associates).
Now I've had some interest for a few LL but no buyers so far.
Some LL may get traffic, in particular when the reversed counterpart is developed. So you might get typo traffic for ac.is (small biz but who knows).
I suggest not to wait for offers (they may still materialize but no guarantee) and consider developing the domains.
I like but cannot guarantee a healthy return soon.