The Land of Israel is not just "territory." She is not just some place in which we are permitted to live. She is not just a piece of land which sustains us, or a beautiful landscape which enchants us. She is all of these things - and more.
Do I recite this bracha when smelling a delicious cup of coffee or a freshly-baked pastry? After all, the coffee bean is a fruit, and the flour of the pastry is a grain, which is also halachically a fruit.
A Hasidic parable teaches us that there are two faculties at work in a person's character: on the one hand, there is a forward-pushing, dynamic ingredient; on the other, a fixed and constant ingredient. One must know when and how to use each trait.