I don't recall hearing it before 9/11, was it used before then?
It has now come into usage in the UK government too, and it sounds ridiculous in UK English.
What's wrong with 'national' security?
If you think the use of "homeland" is either ridiculous or creepy, it may be because of its historical usage.
Jeff Neberman, who teaches European history at Boise State University, says it's "right out of Nazi Germany." The German word "heimat" means "homeland" and was used by the Nazis.
Its usage makes me feel like those movies about Nazi Germany, where citizens were daily accosted for: "Papers, papers please", and then taken off to jail if they didn't have them.
But not for Americans or British. It's more readily associated with reasonably unpleasant historical figures:
I've never much liked it. It gives aid and comfort to the ridiculous "Bush is a Nazi" crowed, for some of the reasons cited by others.
On the other hand, I've not seen other, reasonably helpful alternatives proposed. "National security" doesn't work; it's most frequently associated with international relations. "Internal security" doesn't seem much better.
'Course, the same people who will criticize the name want to forget that Bush opposed the creation of another Cabinet-level department, and beat him about the head and shoulders for doing so.
though Bush did say having a dictatatorship would be easier ...
That never to himself (herself) has said
this is my home, my native land...
That may be why so many Iraqis are willing to put their lives on the line to throw out the invaders.