Smart guides don't work properly
It has been too long for this not to be working right yet. Smart guides aren't smart enough. When smart guides snap to something it has to be exact, not .05 pixels off. Close enough is not good enough. Also, when I drag over an object it needs to snap to that object, not some random shape clear across the pasteboard. If I have to zoom in 2600% to manually align something (which I often do) smart guides and snapping have failed. Is there some ridiculous setting I have to change to get this to work the way it's supposed to?

It’s dangerous to call things Smart... When they behave dumb, the name sound like an insult. Sadly, this is the case.
Please provide more specific cases, with video proofs, ask you colleagues to share and vote, to move this further. This is the way to force changes to things that are broken — be vocal and persistent. Thank you all and let’s hope we get heard.
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Stéphanie Noverraz commented
Since I cannot post a video in the reply, I have uploaded an example to my DropBox.
It shows a similar problem (which I think is related): pen tool snapping to another point than the one highlighted by the Smart Guides. -
Valerii Mamedov commented
Let me add a small comment to smart guides. The smart guides doesn't snap to point text. From the words "at all".
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Anonymous commented
I completely agree with the above comment as well. Smart guides were working for me up until I installed Illustrator 2018. I had to reinstall the previous version because I couldn't find a solution. I had thought to reset the preference file but just gave up out of frustration. The "unsmart" guides were causing a complete work stoppage for me and were starting to cost me money because it prevented me from getting projects completely in a timely manner. This needs to be fixed. It's too bad that Adobe swallowed up FreeHand, I loved that program.
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Heinrich commented
Agree 100% with the above comment. Guide snapping in general is pretty pathetic. It doesn't snap at all... trying to get a guide in the center of an object is just about impossible. Adobe should focus on getting the small things right!