While the speed-of-light propagation is about 300 meters in a microsecond, isn't the final position error possibly much greater? For calculating position on Earth, you can think about a sphere expanding at the speed of light from each satellite. The 1 microsecond error here corresponds to a radius 300m bigger or smaller, which only corresponds to 300m horizontal distance on the ground if the satellite is on the horizon (assuming that Earth is locally a flat plane for simplicity here). For a satellite directly overhead, the 300m error is a vertical distance. Calculating the difference in horizontal position from this error is then finding the length of a leg of a right triangle with other leg length D and hypotenuse length D+300m, where D is the orbital distance from the satellite (according to Wikipedia, 20180km). The final horizontal distance error is then sqrt((D+300)^2 - D^2), or about 110km.
Of course, this is just the effect of a 1us error in a single satellite, I'm sure there's ways to detect and compensate for these errors.