This article is a very interesting read.
I like the idea of an credit card in my back that produces insulin and all the other regulatory hormones... and no immune system suppression needed.
Embryonic stem cells are controversial for a good reason. These are "ethically sourced", but I'm not sure what that means. Either way... while it's the type of research I'm most interested in hearing about, I'd love it more if there were no sticky questions about the ethics of the process. I guess if the device were made available as an effective cure for diabetes I'd have to do some research and evaluate my biases...
Regardless, it seems like they are tracking down some interesting solutions, especially since cadaver beta cells seem like a dead end for a broad scale treatment.