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?

>I also wonder how do Icelandic nuclear physics textbooks look.
Similarily, German uses compound words for "Oxygen" and "Hydrogen", which are "Wasserstoff" (water material) and "Sauerstff" (sour material) respectively. I imagine Icelandic would use similar types of compound words. Though to be fair, the greek roots that most languages use mean the exact same thing, they just don't sound as funny because we're used to greek (and latin) words invading our languages.