What I call a dumb iron assembly is just that- lumps of steel. You rely on different stabiliser arrangements to produce different fulcrum effects to either lift the drill bit or drop the drill bit, or in the packed hole, hold assembly, to eliminate any fulcrum effects to drill straight ahead. Everything rotates, but you have to remember that while drill pipe looks quite string and rigid, in the scale of a drill string thousands of feet long and 5" across, it resembles a human hair and is quite flexible (if you've ever dropped a stand of drill pipe in the derrick you'll know exactly how flexible drill pipe is!). So the normal build rate is 3° per 100ft- ie a circle with a circumference of 12,000ft.
When steering with a bent motor, the size of the bend in the motor is usually about 0.6° (more than that and the motor wears out and the directional drilling company gets upset), and you drill in two modes: sliding and rotating. When sliding, the bend is oriented the direction you want to steer, the mud motor only turns the bit and the rest of the drill pipe is stationary and you shove the drill string along, for say 15 feet. You then rotate everything for 20ft and drill a straight section of hole, before orientating again and slide drilling another 15ft, repeating the process until you have achieved the turn you want.
A rotary steerable system rotates everything all the time with the steering being done automatically by a tool just behind the bit, either pushing the bit sideways in the direction you want to go or pointing the bit in the direction you want to go. The different service companies either have 'point-the-bit' or 'push-the-bit' systems and will spend a lot of time telling why their point the bit philosophy is better than the other guy's push the bit idea....
Generally steering with dumb iron is almost unheard of now, and I doubt if there's many people alive who can still do it and reliably get where you want to go. Steering with a motor is a bit of an art, and you have to know what the DD is doing (check his slide sheets to make sure he's not being lazy and giving you a 3°/ 100ft hole with high dog legs- ie all the steer in 20ft, then rotate for 80ft while he has a coffee in the DD shack!). Rotary steerable systems give you lovely smooth holes, and keeping the hole clean is much easier as the pipe rotates all the tiome, which is a big problem when sliding, especailly in high angle holes. You can have teh trajectory pre porgrammed in and off it goes- you can even hook teh rotary steering head up with the logging tools and it will steer automatically for you! But they are very, very very, expensive. And most DD's I know don't really like them, as they don't get to go up to the drill floor and tell the driller what to do every 20 ft... "I just stay here in the shack watching the computer- all the fun's gone out of it!" is a comment I've heard a lot.