Thanks for covering this. The article doesn't mention the price, which is a big deal right now. According to Coinmarketcap, the value of 1 AUR now is $15.09. You mention each Icelander getting about 31 AUR, so this is over $450 worth of value for every single Icelander. That's a significant incentive for everyone to sign up. Good luck to Icelanders and to the team behind Auroracoin, exciting times ahead!
Was not having one global currency - one of the main reasons to introduce currencies in the first place? All those "national" currencies will be susceptible for 50%+1 attack.