1x1 pixels for padding and aligning were absolutely a thing in the late 90s (1997+). Don't know what alternative history you have in mind, but it was used at the "table layout" era.
What came later was the float layout hell- sorry, "solution".
The 1x1 pixel gif hack arrived shortly after Netscape 1.1 introduced tables. I belive this was before colored text and tiled backgrounds became available. So the hack is definitely part of the “golden age” of web design.
In the 90s, sites did kinda look like that.