I think while some changes - particularly permenent legal residency as oppossed to citizenship - and community service and/or a fine - might benefit the public image some -- I think you need to be careful that you aren't going to carve out so narrow a bill that it covers a very small handfull of people. That would seem to defeat the entire principle of DREAM. If you carve it down to where only the people who have either a huge very large of family/financial support and/or are the exceptionally intelligent/determined individuals you guys are.........well I think you would be missing the point. For example - needing to have a masters degree ? how realistic is that for most people - not just DREAM people, but anyone ?
Also I think you might do well to look at what is happening with the childrens health care bills right now...... tons of compromises, lots of groveling, lots of lies and misinformation put out by the people against it ---- and still it doesn't get an override. And that is a much more popular measure. Or virtually any other measure put out in the last 5 years. Dems put out something modest - the fanatics on the right lie and distort to get their base riled up and mislead the majority who don't pay attention - dems are polite - get steamrolled - try to compromise - more steamrolling - the end. We know about the lies put out about DREAM because it is what we care about. Most people don't.
I think there are solid, strong reasons why conservatives, liberals and moderates would support the basics of DREAM - they just didn't hear them over the noise of the fanatics.