""Can anyone explain why this is? The GPS satellites are all in low orbits, so the relative velocities between each satellite and the GPSr will be quite large. How is it that the software on the GPSr can cope with satellites flying around the sky, but can't cope with the receiver crawling around the earth?"
My response:-
Altitude of orbits (low or high) is probably irrellevant in respect of relative velocity to us on ground, relative velocity is still fast/large whatever.. (as each satellite is 12,000 miles up travelling at 2000mph,) depends on how high and type of orbit.
Sensitive gps receivers will pick anything up these days, but the ionosphere, cloud, rain, ice and virtually every single factor at every altitude from the satellite to us, that can effect/influence a GPS signal will do so in some manner, whether delaying, attenuating or bending the signal. The software has been adapted over the years to cope with all this, so we joe public switch on and expect perfection. Thats OK if we are out in a field with clear sky everything should work. But we want to walk with it, cycle with it, drive with it, fly with it and some people even want to geocache with it !!.
As far as I am aware the antenna design on most GPS receivers dictates the antenna has to point up or towards the satellites (e.g. the antenna cannot "see" 360 degrees, maybe 180 at a push (I don't know). So if you drop it, cover it for a couple of seconds the GPS update rate of 1 second may not be able to cope with the outage and therefore give a jumpy/staggered type update on display.
Then don't forget as with all radio type signals there will be areas that just don't get a GPS signal or there may well be local interference of signal e.g. has anyone had problems picking up a signal when near 30Kv pilons ??
Don't know if I've answered the question, but at least it may stimulate discussion.
Bassrock
(PS clue to my location is in my name)