I assume a much higher accuracy than just somewhat better than the base rate.

How much higher would that be and how do you know the Icelandic imputations do not meet your standards?

It's still a statistical estimate and as such is quite different from actually sequencing the DNA of a specific individual.

A 'actual' sequence is itself a 'statistical estimate', since even with 30x coverage there will still be a lot of errors... (It's statistics all the way down, is what I'm saying.) For many purposes, the imputation can be good enough. DNA databases have already shown their utility in tracking down criminals who are not sampled in it but their relatives are. From a Kuwaiti perspective, your quibbles are uninteresting.