It was fate because I had been toying with booking flights for our trip to Iceland this autumn and the best I had found so far was $555 and even that was a hacker fare (where the flights to and from would be booked separately to save $100) and I had even signed up for notifications (through Kayak) for any price decreases.
Basically, the sale was only for a handful of european cities. But, the great thing about Icelandair is that you can plan a layover (up to 7 days) in Reykjavik either to or from your destination. So, I gave us 24 hours in Copenhagen and almost 7 days in Iceland. The flights really did end up being $449 for round trip tickets including fees and all that jazz.