I think its a shame you're being down voted rather than provided with advice. Here's some advice that maybe you can use. I think that doing research is fantastic but you should visit a place before you decide to permanently relocate there. Considering your live in Hungary I think that's perfectly reasonable.

Absolutely, though again in my situation it's a bit complicated. I won't bore you guys with all the details, and it probably doesn't matter all that much anyway.

What I mean by that is everyone already speaks Icelandic, they will always be better at it than you, even if you complete a BA in it. So, at the end of the degree your marketable employment skill is something which everyone already has and is better than you.

I understand what you're saying here, and for the most part you are certainly right, though foreigners often have a more in-depth understanding of a language than the native speakers do due simply to having more study of it. However is not being a native English speaker a valuable marketable skill as well? Surely it goes the other direction as well, sure, I will never be as fluent in Icelandic as an Icelander, but likewise I will always be more fluent in English.

Also, I am still trying to figure out what to do with my career and graduate studies. Psychology is my current field of study, but I don't think that I want a career in it much (this being one of the main reasons I am leaving Hungary). Languages are my passion, so translation/linguistics is my next logical step. The plan may change by the time I finish my BA, and then I can branch off to another related field of study if that's what I decide to do.