[JimRed]

Why aren’t we using small, smart steerable missiles to home in on such a target? Do such things exist?

They do exist but they are costly. Ammo for small cannons and machine guns is cheap.

[ProtectOurFreedom]

One “smart” shell versus 10,000 dumb bullets? Where’s the economic cross-over point?

I can see the logic of giving sailors shooting practice with dumb bullets, though. That’s an area where you don’t want OJT to be the rule of the day.