Swedish has 18 monophthongs, Standard German has 14, RP English has 13, so although there's some correlation between the number of vowel letters in a language and the amount of vowel sounds, different languages solve the problem differently.
And in the case of English, horribly. English orthography is objectively crap, where vowels represent multiple vowel sounds depending on context and the history of each word to a ridiculous degree.
i ü ï u
e ö ë o
ä a
Throw in another diacritic for lowering that can be combined (say, ogonek), and you get 20 vowel characters to play with - that's sufficient for just about any language I can think of, and with some care in mapping, also translates naturally across languages.Most other systems are very haphazard largely because all of this stuff evolved as scribal abbreviations. (So did umlauts, of course; it just happens to be the lucky case where it ended up mostly consistent.)
If anything, there's a dialectal glide from Ä to E in some places, so we think those two vowels have way more in common than Ä and A.
If you write E instead of A in a word, we can read it, but you look like a small child who hasn't learned proper spelling yet.
If you write Ä instead of A in a word, we're confused, and you look like a foreigner who's learning Swedish and is still confused about the extra vowels.
They're characters that represent vowel sounds, sure.
It's kinda the same thing as how in the English alphabet, Y is by definition a consonant, despite being used to represent a vowel sound in many words. (beauty, many, cyst, tryst, for example)
Of course, the more accurate take is that it's by definition neither a vowel nor a consonant because those are properties of sounds. They only apply to letters to the extent that letters consistently represent sounds, but when they do not, it doesn't make any sense to categorize letters like that.
> The umlaut symbol originated in German but has been borrowed into other languages, including Swedish
Actually, no. In Swedish, Ä is not an A with an umlaut, Ä is a distinct letter of the Swedish alphabet. Swedish has nine vowels: AOUÅEIYÄÖ, unlike German, which has five vowels: AEIOU, and three umlauts: ÄÖÜ.
The evolution of it in Swedish comes from Æ -> Aͤ -> Ä, while in neighbouring Denmark and Norway, they kept both Æ and Ø. All three languages also have Å, which comes from AA.
Super-mega-pedantry edit:
Okay, the article says Swedish borrowed the umlaut symbol, and this is actually true. In the 1500's when printing presses were becoming common, Swedish printers imported them from Germany, the German ones didn't have Æ types, but they did have Ä types, and the Swedish printers essentially went "ah, fuck it, can't be arsed", and started using Ä and Ö.
...while the Danish printers also imported the presses from Germany, but said "fuck you, we're making our own types" and kept using Æ and Ø.