Although celebrating with Wine can be a Mitzvah, there is a human element of happiness that comes as a result of drinking wine therefore somewhat limiting its happiness, as opposed to water that doesn’t naturally result in happiness, which they would draw for the Mizbeach on Sukkus . Hashem commanded to do so in happiness, therefore the happiness then is only divine. In addition we draw all the energies and light from Rosh Hashanah and Yom Kippur on Sukkus through happiness where we surround ourselves with it because everything we do is in the Sukka and then we internalize it and bring it to the heart with a Lulav and Esrog.

לקו״ש כד