Well that would only work if they are using the most simplistic encryption on the planet (i.e an XOR cipher or something like that). In general replaying the same data through an encryption algorithm should not result in the same encrypted result being generated. Thus if you were to replay the existing signal it should decrypt to nonsense.
You've sort of described kind of how some auth systems work around MITM by having a bidirectional conversation with salt while sharing a the same clock and talking about timestamps during their bidirectional conversations. That doesn't work very well in a broadcast environment where your only source of timestamps is the MITM and technology exists such that the MITM sounds just as good, but louder, than the genuine other guy.
You'd be surprised how many people think GPS is a bidirectional protocol like DME/TACAN or an aircraft radar transponder. Its actually a heck of a lot more like the old fashioned TRANSIT sats or VOR or LORAN or OMEGA, with a thin smear of spread spectrum on top to reduce the impact of simplistic jamming and it sends more metadata on top of the nav data than pretty much anything ever invented.
Speaking of OMEGA, there's a Navy training film from 1969 on Youtube[1] which explains some of the theory and is helpful in understanding where GPS came from.
The parent isn't talking about MITMing the signal to modify it, just to delay/buffer it. No need to decrypt/encrypt. If you could delay the signals from different satellites by different amounts, would that not also change the position?
