I'm Israeli. I did expect it to be high on the list, but that gap between it and 2nd place is quite surprising...

I can think of a few reasons:

1. Israel is in a way similar to a big city - a small place and tightly knit. It's a young nation without much traditions so people are open to try new technologies and if they work out they quickly spread.

2. Since Israel's main industry is hi-tech (it's 2nd or 3rd in number of NASDAQ traded companies) having a computer is seen by parents as important for their childrens' future prospects.

3. There is some still kind of respect for knowledge mentality (you wouldn't know it from the reality shows on our TV channels, but it's one of the top book reading nations) which meshes well with the internet etc.