Being a type 1 for some 35 years now with a needle phobia myself i can understand your childs fears.If this cream will help, then use it! It dosent matter what helps, if it works use it!!!
( peoples pain thresholds are different so being told "its only a scratch" should read its only a scratch to me.Besides its not always about the pain ).
I myself tried to get this cream but my GP refused to prescribe it.I use a jet injector which hurt like hell, more than needles do, but i have never been happier and dont fear injection time.
My personal advise:
1) Use the creams.
2) Try hypno therapy i have heard it does actually work for a lot of people.
3) Try pens,syringes,pumps,jet injectors,try them all, or rather let your child decide which they want to use.If its their choice, then a huge amount of the "fear" might be overcome.Ask your diabetic nurse about all the forms of medical treatments and delivery systems available to you, if they respond with "you can only use what you use now" just respond to them with the names of the devices above, they are ALL available ( how long to wait is dependant on individual PCT's, but they are all in the n.i.c.e guidelines for the treatment of diabetes! )....If you sound like you know your facts you usually get a very different "helpful" reaction you see!