Nope. It is the hardware vendor's job to create a machine that actually works.
Nope. Take a look at Google Maps on the iPhone while you're driving on the highway. Software is used to compensate for the occasional inaccurate coordinates reported by the GPS by averaging the last X coordinates. That's how Google Maps is able to keep you on the freeway even if the GPS reports that you're off the road.
If you designed software to display the user's location based exactly on what the GPS is reporting, your customers would hate it and go somewhere else. It's up to the software to compensate to provide a better user experience.
I could easily think of 10 other examples like these.