oh, man. You’ve inadvertently unlocked my Mastermind specialist subject: “The Reykjavík Food Scene 2000-Present”.
TL;DR: Dill is still open, and still has a deserved Michelin star. It’s still no. 2 on my list for a celebratory dinner in Reykjavík.
Longer: in late 2015, Gunnar Karl moved to NYC to open Agern in Grand Central Station. He left the very capable Raggy to take over Dill and they got their star in February 2016.