Hi DorneyLake123. I've visited the place yesterday.

1. I think the `place` should not be hamlet, maybe it is `isolated_dwelling` based on its size (https://wiki.openstreetmap.org/wiki/Key:place). The village Miðvogur east of it is separate from it, as it seems. Also, there was a fence "private area, no trespassing" right in front of the houses, i.e. south of the service road. The east highway=track contains a barrier=gate accordingly (https://www.openstreetmap.org/node/6614560295).

2. The place should not have both locality and hamlet, just one of them. So the question is primarily which key to use, because imho they contradict. I vote for `isolated_dwelling` here.

3. The historic=archaeological_site seems fine, but I would refrain from adding a more precise `archaeological_site` tag. Nothing seems to fit (the best would be `archaeological_site=settlement`, but the place clearly still exists).

To answer your question, I think the place is the `archaeological_site` itself, because all the houses there are old-style Faroese buildings, i.e. made from wood and with grass/turf roofs. I do not know if they are actively inhabited.