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KTH and KI have many students who would do well at schools like Harvard. The level of the education is better than at the best IITs. It has people like Håstad still active.

Would you say the same about Independent University of Moscow or about or the ETH? At least IUM is obviously better than Harvard. I don't have specifics about Harvard people, but I know that the Chalmers people I know have a higher average level than the Ivy League (none from Harvard) people I know. I have no comparison of the KTH people and the Chalmers people, but in theory the KTH people should be better, because I've never been in a workplace with both the KTH people and the ivy league people, so I can't compare them.

The core thing though, is that people in the US who want to get into these schools have to do hoop jumping. For these Swedish schools hoop jumping makes no sense, because you'll get in if you're academically sound enough, so you can actually focus on academic soundness, so you do.