They wanted to keep accurate global positioning as a US military exclusive capability. It's definitely useful for guided munitions, & alternative satellite positioning systems didn't exist or were less mature at the time, so US GPS was the only system one could realistically use for that. A missile able to hit a target within a 3 meter radius is vastly more effective than one that can only hit within 100m, for instance.

There are still some restrictions around this sort of thing: IIRC a GPS receiver for sale to the public isn't allowed to give accurate data if it's too high up &/or moving too fast, to prevent unauthorized usage in ICBMs & other similar weapons. I think there would be a lot of red tape involved if you wanted to buy an unrestricted GPS device without this limitation.