It's not about airliners...it's about *drones*...everybody wants to be able to fly drones around in virtually any kind of airspace, IFR or VFR, but "seeing" and avoiding other aircraft (seeing via ADS-B traffic info).
If drones/UAVs are going to be operating close enough that I need within-a-wingspan accuracy in my position for them to avoid me, that's too darn close. 300ft should be plenty accurate on both ends; just require that the avoidance algorithm maintain minimum separation of some multiple of the maximum GPS error.
There is no "maximum GPS error". GPS position is computed with a certain statistical error (used to be called Dilution of Precision, or DOP, but I don't know if the same terminology is still used...there was PDOP, VDOP, HDOP, etc.). It depends on the geometry of the satellites in view, among other things. And it's *statistical*, so you have to specify what sigma you want...1 sigma, 3 sigma, etc.
It's not as simple as X * some value.
That's also partially what RAIM and FDE is all about...identifying when you can't meet position to within some statistically valid figure.