This does work well for an icy setting most but any baren lonely landscape could work in my opinion, Maybe not a sandy desert, a gravel desert perhaps? Well in any case as repetitive and annoying as this song can get i think that works perfectly. Imagine for a second that you for whatever reason are wandering Antarctica and you don't see any people. Just snow for miles, no sense of direction, everything looks the same, it repeats, its annoying, you wanna go home, find shelter, get outta there. If it goes on ay longer you might lose your sanity. That's how the Iced Land song makes me feel.
I used to be scared of this song and it still kinda creeps me out. The feeling you describe is exactly why. Eerie, chilling, and unsetteling. It reminds me a bit of the Famous ¨Tubular Bells¨ which also uses a series of notes in a similar fashion. Talking about unsetteling tunes, this