Eventually this has the potential to be great news for literally hundreds of milliions of people.  It's still a long way out but seems to be on the right track.  It could bring about an end to two major and several minor charitable organizations and cure one of the most damaging diseases in terms of blindness and loss of limb that is out there.

http://www.canada.com/nationalpost/news/story.html?id=a042812e-492c-4f07-8245-8a598ab5d1bf&k=63970

Of course doctors/scientists and others have known for a while that inflamation in the pancreas and the destruction of the islets was the  source of diabetes and we've seen several initially promissing studies which then failed to pan out.  But as I've noted in the past, when researchers address the issue at it's source (the pancreas) they are in my opinion on the right track for a cure (as opposed to a treatment).  By the way this study would in my opinion fit with an earlier summary that said extremely high doses of aspirin which adressed inflamation in the kidney/pancreas by blocking certain enzymes:

http://www.usatoday.com/news/health/2001-08-30-aspirin.htm

and it fits with another old study which I unfortunately don't have a link to which talked about a similar path to a cure for diabetes.

Unfortunately just like the past stories there are still alot of questions and it's way too early in the process to really think this WILL end diabetes, but at least its another step in the process of finding a cure.