Unfortunately for your hypothesis, the etymology of the Norse or Icelandic suffix "-vik" in Reykjavik is known. It means "bay", originally through a sense of a twist or turn, like a turning in along the coast. It is related to English "wend", "wind (up)" or "way". ("Sideways" = "turned to the side".) The same Indo-European root, in a slightly different but related sense (think "turn over") via Latin gives "victor" and "vanquish", and also through Germanic "weaken" (to make yield).