We are not rebranding AUR, it's still the same coin. Starting a fresh coin in Iceland will never get the same distribution within Iceland.
It's worth mentioning that Peter seems to think it's a rebranding:
http://cointelegraph.com/news/auroracoin-makes-a-comeback-in-iceland-the-country-mired-in-financial-scandalsAnyway, couldn't the same distribution method that was employed with Auroracoin be employed with a fresh coin?
Is the goal of this project for people in Iceland to use AUR when paying each other?
Yes.
Does Bitcoin's failure to penetrate the remittance market in any country make you think that Auroracoin would fail to do the same in Iceland?
We love BTC but the problem in Iceland are currency controls that prohibit people form buying BTC, therefore Auroracoin was distributed to the people of Iceland.
It is legal to exchange the krona for AUR but illegal to exchange it for BTC?
Do you know who controls the address containing ~40% of the AUR?