I think you are correct, the Italians use a lot of olive oil and always have a bottle on the table. And the fats in olive oil are the good kind of fats (poly and monounsaturated). I've been using olive oil for two years now and I swear by it. I pour it on rice, vegetables, fish, breads, etc. In fact I eat a tin of sardines almost daily and they are packed in olive oil as well. My butter consumption has been reduced by 2/3 in favor of olive oil.
Don't forget the garlic!