For dwellings, it's a conversion; for mines, it's an upgrade. The processes are different. If upgrading dwellings were a form of growth, then they would be comparable to mines. But, considering the different procedures, they are different not only in application but also in result.
From my side, I can suggest developing the ideas of conversion further – up to mines and heroes. That would be fun. And I can use the same arguments. Why do I need a mercury mine when I need a sulfur mine? Let's convert it. Why do I need a mage hero with high magic and knowledge when I need a warrior hero with high attack and defense, or change their specialization? In *Heroes of Might and Magic*, they even introduced rituals for this.
Oh yes, we also need to be able to convert neutral creatures, in case an inconvenient army appears. Plus, of course, artifacts. If I have a great mace, why do I need a weak sword? Let's turn it into a shield instead