Icelandic

So i herd you enforce the no-loanwords policy in Icelandic, remove everything foreign, etc.
Does anyone really follow it in colloquial speech?
Or, by far, does anyone really use Icelandic in everyday life?

They tried the same with Turkish - Computer is something like "information counting thing" - after some point they got overwhelmed and dropped the thing, anyways they ended up with a language with a vocabulary of ~300.000 words from Ottoman Turkish which was in the range of millions and second to only English.