Arguably, no. What if you don't have an address? What if you've just moved back? They cater for that and assume you're staying somewhere - and as a result, hotel addresses are acceptable.
So if you wanted to legally dodge it without any possible problems, book a night at a hostel, and use that hostel's address on the form.
As for refusing, I've seen people try, and it doesn't work. The border guys want an address. However, it's just process - I've seen one backpacker literally turn and ask anyone behind in the queue if they know the address of a hotel, and someone named the one from Pretty Woman on Rodeo Drive. So he wrote that in, and handed it to the border guard, who shrugged, stamped, and completed the process.