For comparison, would Harvard or Stanford be allowed to call themselves an universitet?
And as was written above, some establishments, as they grew from institutes to universities, decided to keep the old name, MIT and CalTech included.
> To put it very simply, 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.