Of course, noone has ever suggested that Jews "can never live anywhere but in the land of Israel". You've missed the point of the song -- that the Jewish people has no other homeland, not that individual Jewish persons can't live in other countries, which is a silly idea that noone has advanced. It may well be that you know so little of Jewish history and culture that the only link you understand between our traditions and our homeland is the fact three generations ago, many Jews returned to Israel. If so, you are indeed better off living elsehwere. Those who have a more personal connection to history, on the other hand, well understand the words of the song.
Wounded Israelis in suspected car-ramming attack in West Bank are soldiers (Haaretz)
from the article: I do have another country