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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).

http://en.wikipedia.org/wiki/Paveway

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

Guided bombs were used in WWII.

Laser guided bombs made their debut for the US in Vietnam [http://en.wikipedia.org/wiki/BOLT-117]

They were stars of the bombing campaign prior to the ground attack during the first Gulf War. [http://www.youtube.com/watch?v=md00oEyn6kg]

British forces used laser-guided bombs in 1991. The target was laser-painted by a Buccaneer, bombs were dropped by Tornado.