LAAS stands for Local Area Augmentation System and is a local, ground based transmitter that provides the "correction" to the GPS signal you were describing. Yes, it is still required even with Selective Availability (the intentional "skewing" you describe) turned off. Boeing has been doing some work with LAAS and has been having some incredibly impressive results with Cat III autolands using a LAAS system. Unfortunately, the FAA has been dumping its resources into WAAS instead. There are benefits to the aviation community as a whole with WAAS for sure. However, LAAS offers a lot more promise IMHO.
As for the GPS jamming. I can't speak to it other than to say yes, you can jam the signal. I'll also say that for every problem there usually is a remedy. I honestly don't think it is of grave concern to the extent that it is slowing down LAAS development. Everything I have heard states that the ability to jam a GPS signal is not what is holding back faster LAAS development, a lack of $$$ from the FAA is the problem. Right now they are spending the money on WAAS.