I wouldn't call whois info a farse, it's effectivly the ownership papers for you domain name. Most of the whois fiels must be filled in with something. Ultimatly it's your decision if that info is correct or not. This is standard for all domain names, regardless of who your registrar is.
Some registrars, (dreamhost is not one of them) provide this private domain registration now. Basically instead of your contact information on the domain, they put in info for their company and will pass on any stuff they get in regards to your domain. However, you have to put a good bit of trust into the company you do this with, becuase if they should go out of business and not transfer the domains that leaves you in a place where it may be difficult or impossible to get your domain name back - becuase your name isn't on any of the ownership papers.
In my opinion it wouldn't be an issue to leave a false address in the record as long as your name and E-mail address is correct.
A P.O. Box or Post Office box is something that's easy to get here in the states at least. You go to your local post office, and rent it on 3, 6, or 12 month basis. You get a gey to your box, and you can have mail sent there instead of using your home address. Something like this would allow you to use valid informaitn while not giving out your physical address.