Thoughts about the government being to nosy are overdone. We have very real terrorist threats around the world, and they must be dealt with in a reasonable manner. The DREAM act will help to maintain security and justice, keeping American Citizens free. Freedom is never free, it come with a price, which is protection.
No, the DREAM Act will not enhance homeland security, because it encourages parents to bring their children to the United States. If parents know that their children will be able to stay in the United States if they only get them here early enough, they will be more likely to bring there kids here when they are young.