> the difference between universities (universitet) and university colleges (högskolor) is that universities can award degrees at the doctoral (third cycle) level because they have general permission to do so.

The text wrongly implies that "högskolor" cannot award doctoral degrees. This is not true. It's just that they don't have a built-in general permission to do so.

In practice, KTH/CTH etc have a large number of doctoral students and award many doctoral degrees every year.

Not to discredit any of what you said, but I believe both KTH and CTH are classified as universities, despite what their names imply.

This is correct. KTH hasn't changed its name because the name has an extremely long history.