The gemara in Beitzah, 17a discusses the closing to the blessing on kiddush hayom on Shabbat/Yom Tov
(Rebbi): We close the middle Berachah with a reference to Yom Tov, - Mekadesh ha'Shabbos, Yisrael v'haZemanim.
1.The wording taught before Ravina was Mekadesh Yisrael v'haShabbos v'haZemanim.
2.Ravina corrected it back to Mekadesh ha'Shabbos on the grounds that Yisrael is not Mekadesh Shabbos.
(d)(R. Yosef): The Halachah follows Rebbi, as qualified by Ravina.
The Schottenstein edition (17a1, note 10) explains,
God sanctified the seventh day of creation and every seventh day thereafter is automatically the Sabbath. The sanctification of Israel in no way affects the Sabbath. Israel's sanctification affects only the sanctity of the festivals, since it is the Jewish court that determines the date of Rosh Chodesh, which in turn determines the dates of the festivals. Thus, Ravina objects that if someone first mentions that God sanctifies the Jews [Israel] and then mentions the Sabbath, he implies that God sanctifies the Jews who can then sanctify the Sabbath, which is erroneous. It is therefore proper to mention the sanctification of the Jews before the sanctification of Yom Tov, not before the sanctification of the Sabbath.
This not only doesn't address why we couldn't include the sanctification of the Jews AFTER the mention of the sanctification of the Sabbath (Mekadesh hashabbat v'yisrael), as asked in my other question, and it certainly doesn't address why Ravina or anyone would infer a causal link between listed elements in the bracha, or why one would think that a blessing worded to list what God has done would somehow be understood to refer to what Israel could do, but it also flies on the face of the wording of the Shabbat morning and Mussaf amida which speaks of Israel as:
עַם מְקַדְּשֵׁי שְׁבִיעִי
(and of course, there is the sentiment behind this piyyut)
The ma'ariv amida and other lines in the daytime tefilot all attest to the fact that God sanctified the day (ata kidashta, uvashvi'i ratzita bo v'kidashto) but then why would the Shacharit and Mussaf amidot call Israel the nation that sanctifies the seventh day?