Your conclusion is correct: The standard timers of the LPC43xx cannot generate a PWM signal by themselves. They require software to initialize the pin at the beginning of each cycle, causing jitter and limiting the achievable minimum and/or maximum duty cycle.
Extended versions of the standard timer IP block provide a basic PWM mode, but they only exist in other LPC device families (e.g. LPC11U3x), not in the LPC18xx/LPC43xx.
For LPC43xx the preferred method of generating PWM signals is the SCT module.