After removing a serious source of stressor from my life, my hypo occurance went down by 90%. No kidding. Sadly this stressor was masking my hyperglycemia... so afterwards I had to increase my dosages by 1-2 units daily, but it was worth it.
As for depression: it's bad because it drags you down, make you care less about yourself and others. I suggest walking. It's scientifically proven that walking (I think it was 40-60 minutes a day) cuts the risk of diabetes by 50%! As for us, diabetics, it can make us become insulin sensitive, lift our mood (especially if you get some sunshine along the way) and help with depression.
Walking is the perfect exercise because it's not as aerobic as running, and not as anaerobic as lifting weights. It's the best exercise to get in shape and/or stay in shape for a diabetic, but you must do it daily.