The major reasons why you need a fourth satellite is for timing corrections. If you know the exact position and speed of the satellites, trilateration will give you indeed 2 points, but one will usually be impossible or with an impossible speed. But a gps receiver uses the time it takes to receive a sattelite signal to determine the distance to that satellite. Even minor errors in the time of your gps receiver will cause huge errors and therefore a large uncertainty band when you have only three satellites.
