SOME F-16 units had LANTIRN capability...not even close to all of them. The majority of available pods were being allocated to the Mudhens.
As far as "the aircraft not being able to be used to its fullest capabilities without one"...during Operation Babylon the IAF destroyed Iraq's nuclear reactor without targeting pods.
"In less than two minutes, Israeli F-16s dropped more than fourteen metric tons of ordnance around the center of the sixty-foot reactor. According to Perlmutter, “In all, sixteen Mk84 iron bombs were dropped on the reactor. The accuracy of the bombing, considering the IAF used no smart bombs, was astonishing. All but two were direct hits within thirty feet from the center of the target.”