https://blog.racket-lang.org/2009/03/the-drscheme-repl-isnt-the-one-in-emacs.html
Notice the dissent in the comments section.
I was also under the impression that the Lisp Machine way of developing was also the Smalltalk way of developing, but maybe I am misunderstanding
I believe your understanding is correct, at least when it comes to the "traditional" Smalltalk way of developing. Squeak and Pharo are "traditional", while GNU Smalltalk is not (note that GNU Smalltalk is unmaintained).