Yes, AC is just electrons vibrating back and forth.Electron movement under AC Current: With DC current, electrons flow in one direction. With AC current, do the actual electrons move x-number of µm, and then those same exact electrons are pulled back to where they started (0) and then pulled x-number of µm in the other direction... essentially never moving on down along a wire, but just kind of being pushed and pulled back and forth? As far as I know, there is no "water analogy" to explain alternating current.
In line with your original question; why doesn't' the copper physically change? It's because even if an electron moves out of orbit it only does so because one has been pushed into its orbit. When that invasive electron goes away another moves in to fill the void.
Water analogy? Waves on the shore. The length of the wave can represent the frequency. OR when a bug lands in your swimming pool and furiously flaps its wings trying to get free - ripples are sent out. Miniature waves, just like the AC sine wave. Short fast waves represents a higher frequency than oceanic waves. I don't know if this will fulfill your search for a water analogy of AC, I'm not even sure it's all that great. Again, it's the best I can do.