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But geothermal heat pumps are interesting in cold climates because air-air and air-water heat pumps (the most common and affordable types) are less efficient below freezing, so I feel like that confirms rather than dispels the myth!

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Air-air heat pumps have gotten a lot better in the last 10-20 years and a modern one by a reputable brand will absolutely still work at Nordic winter temperatures. People buy those too, but not generally to heat entire houses.

Air-water is not popular here, I know they exist on the market and some people probably have them but I don't think I've ever seen one.

My air-air heat pump works down to -13 fahrenheit. Its less efficient but still more than efficient enough to heat my house, and more economic than anything else when its below freezing.

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