Here are two more pieces that I saw at the store (Erla in Reykjavik).
The second piece appears to be a reproduction of a 17th century original. Here is a photo of the original from the book Traditional Icelandic Embroidery by Elsa E. Guðjónsson.
According to the notes for this photo, the embroidery is from a 17th century bed valence from western Iceland. Stitched in wool using the glitsaumur or straight darning technique.