The results are very similiar. Using your method the difference is hard to see, because the line break appears at the end of the line as line break directly followed by a line break.
Better check this by a numerical display of the ASCII values:
fid = fopen('sweden.se', 'r')
while ~feof(fid)
s = fgetl(fid);
% disp(s);
disp(double(s));
end
fclose(fid);
fid = fopen('sweden.se', 'r')
while ~feof(fid)
s = fgets(fid);
% disp(s);
disp(double(s));
end
fclsoe(fid);
You can read the source of the file fgetl.m to see, what happens.