The continuous, automated monitoring of sensor-based data for walking capacity and mobility has expanded gait analysis applications beyond controlled laboratory settings to real-world, everyday environments facilitated by the development of portable, cost-efficient wearable sensors. In particular, the integration of Inertial Measurement Units (IMUs) into smart shoes has proven effective for capturing detailed foot movements and spatiotemporal gait characteristics. While IMUs enable accurate foot trajectory estimation through the double integration of acceleration data, challenges such as drift errors necessitate robust correction techniques to ensure reliable performance. This review analyzes current literature on shoe-based systems utilizing IMUs to estimate spatiotemporal gait parameters and foot trajectory characteristics, including foot-ground clearance. We explore the challenges and advancements in achieving accurate 3D foot trajectory estimation using IMUs in smart shoes and the application of advanced techniques like zero-velocity updates and error correction methods. These developments present significant opportunities for achieving reliable and efficient real-time gait assessment in everyday environments.