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Almost every year there is at least one religious Israeli student in Wharton, including a guy from Jerusalem with family who is in his second year now, and I'm happy to take the question.
Philadelphia can offer you anything you need in terms of religious lifestyle, including fresh kosher meat, variety of Orthodox communities, kindergarten, school, kosher restaurants etc. We actually have what we call (or what I call) Philly 102, which is a comprehensive guide for Jewish life. Finally, Penn has probably the largest contingency of Jewish students in the ivy league, and has in depth understanding and flexibility with all Jewish holidays, large and small. It also has a huge Hillel and Chabad houses on campus.
Though I'd not wish to compare schools, I must say I strongly oppose the claim that HBS is better than Wharton academically. I'm happy to address specific questions if you have those — feel free to leave your email address. Another consideration you may want to add is the likelihood of extensive community life for your family around campus.
Best of luck,
Aaron