having worked at investment banks I can assure you they are more focused on risk models and fundamentals than technicals. It is such a small part of their trading its almost not worth discussing. Where has the author has sourced the info regarding investment banks and their use of technicals, is it just an assumption! they do put out technical analysis for clients but I have been very close to those teams across several investment banks and it was more of a public display than anything else. They tend to use junior analysts for this as well, people that don't trade for a living.
Quite interesting and extremely well written. I completely agree with the first point. Technical Analysis is never meant only for short term, however it has been seen that short term traders (day traders and swing traders) will usually benefit more from technical analysis however anyone, including positional traders, can take the benefits of technical analysis.