The media did hype this one up a bit. I think most Icelanders already know who their cousins are.
In any case, I wouldn't exist if there hadn't been a bit of cousinly kissing going on at some stage.
That database did cause the odd spot of trouble when it first went online. Some people found out that they had half-siblings which they had never heard of. And I bet that some kids found out that mum or dad had been married before. It is fun, you can look up anyone and see how you connect together, but takes all the effort out of genealogy because it has been "done" already.