Fertilizer production isn't big up here. I don't know why. It's aluminum, and to a lesser extent, ferrosilicon, and there's lots of datacenter plans, too. And actually, the smelters aren't that big of employers. Aluminum is almost as much of our exports as fish, but it's a much smaller chunk of the employment picture.
I think it's a strange notion that on one hand, it seems that you're saying that the cable is going to take a ton of maintenance, but on the other, that there won't be many maintenance jobs. Which is it? This isn't my field, so I'm simply asking you, but it clearly can't be both ways! :) Or, I hope you're not trying to say that Icelanders aren't skilled enough to maintain a cable... And also in the jobs picture on our side is the power exploration, development, and production, which is no small factor.
I think you're overplaying losses. I read a thing from Seimens before which quoted the losses on one HVDC system they were working on at 3% per 1000km (I don't know the details like voltage, conductor thickness, etc). Reykjavík to London is under 1900km. Even if you double the losses from that figure, you're still not talking about that huge of losses.
Concerning your comment about electrical power transmission being more mature... actually I know enough about this field to register a strong disagreement. The surge in HVDC transmission is specifically due to the rapid advance of increasingly affordable, increasingly high power switching electronics in recent years (which has also fuelled a boom in increasingly small, increasingly high power AC induction motors, which is what made vehicles like the Tesla Roadster possible). This advance is, of course, a huge boon not just to long distance power transmission in general, but also specifically to undersea cables, since AC losses on a cable in saltwater are huge.
Sorry for the "press puff pieces", it was just a quick google search to get you some breadcrumbs so you could see that this is actually being seriously discussed, including official visits between government officials.
Again, though, the difficulty of constructing and maintaining such a cable? Not my field. It seems strange, though, that it would be considered so much more difficult than undersea data cables, given that all of the problems you quoted apply to them as well (scouring, currents, shifting, depth, weather, etc). And we've got several already running to Iceland. I mean, you're dealing with a much fatter line for power, but I'd think that would only help, not hurt. Could you elaborate on why power cables are so much more difficult?