Very precise indeed, the reentry vehicles need to be able to change targets in midflight and evade anti-ballistic missile systems. Accuracy is crucial, as you need a much larger nuke to blow something up if your warhead is far way from the target

If you had an unlimited budget you could use space rockets to drop tiny bombs from the other side of the world, but it doesn't really make sense (like killing mosquitos with shotguns). Anyway, the payload is coming down at several kilometers a second, so that 'precise' strike will still destroy a large area from its kinetic energy alone.