They had 'smart' versions of bombs and missiles back in 91. They just didn't have GPS guided ones/cheap guided munitions. They have both now (with cheap in a relative term).
To be specific, the relatively cheap GPS-guided bombs that became available after the 1991 Gulf War consisted of new electronics and new tail sections bolted onto ordinary "iron" bombs manufactured many years earlier.
http://en.wikipedia.org/wiki/Joint_Direct_Attack_Munition