Yes, differential GPS was used to correct the error. It wasn't useful for military purposes though: it took a LOT of time to set up a base station and allow it to collect readings and measure the SA error values. It wasn't a quick thing. And, you had to know exactly where the base station was in the first place.

If you're a civilian doing surveying work, it was fine: you stick the base station at a known location, let it work for a few hours, and then you had high-precision GPS in that area. If you're a military power attacking someone on their own ground, it's not so useful. Even worse if you're at sea.