There were two studies that I had found on PubMed, which I can't seem to locate again. One showed a study done that expressly demonstrated how olive oil stimulates the inceptors of the liver to function effectively, thereby helping to reverse Type II Diabetes. The second study showed the details of how olive oil stimulates the islet cells of the pancreas, and actually causes them to produce insulin, thereby reversing type I Diabetes. I was wondering if you're familiar with these two? If so, you might want to post them on your site, because this is amazing information, and very true. I have experienced the blood glucose lowering effects of olive oil in myself as well. So this is tried and true information, and it would help diabetics enormously, if they knew. Also, I have seen several studies that show the emulsifying power of olive oil, especially when used in conjunction with lecithin, to reverse fatty liver and break down gallstones.
We have a reference page with the articles you may be referring to.
I wish olive oil could have the miraculous effects you read about. Instead the studies have involved small numbers of subjects, rats or cell cultures. Diet is definitely important in diabetics but there are no large well controlled studies in humans which show olive oil can treat diabetics. The fact that it has helped one or two or even hundreds of people does not make it "tried and true" information; there may be thousands who it hasn't helped. This conclusion has not yet held up to the scrutiny of the scientific method.
Diabetes control may be improved by substituting carbohydrate calories with fat or protein calories something which has been knows for decades - see the OmniHeart trial article on the reference page. We know how to cure the vast majority of adult onset diabetics; eat a good diet, lose weight until you are at a BMI of 24 or below, and exercise. Unfortunately most people find dieting and exercising too hard and instead try magical diets, supplements, etc.
Olive oil has no intrinsic emulsifying effects, which is why it is so hard to get it to mix with vinegar in dressing. When eaten with lecithin it will form "soap stones" which pass in the stool and lead to anecdotal reports of passing a gallstone. For decades drug companies and the National Institutes of health have spent millions trying to come up with a drug which would dissolve stones. Several substances have shown promise but have failed to perform when put into larger use. No scientific study has shown olive oil and lecithin removes gall stones. As a proponent of the "Mediterranean Diet", I wish it were true; I could spare my patients the pain of passing a stone or the ordeal of gall bladder surgery.