From what I remember of my paediatric nursing days (a while back now), it does indeed sound like he's in the honeymoon period and, as you've noticed, the insulin amounts can seem so tiny it feels like there's a mistake with the diagnosis. It's rare (and in my experience, unknown) for people to be wrongly given a diabetes diagnosis, though there is sometimes argument over type, but not usually in children as young as 7. It does indeed sound like the honeymoon period to me, might be worth asking his specialist nurse about the hypos as he may need a change of meds. I've given 7 year olds as low a dose as 0.5u before and it's been enough to keep BG in limits. I'm not suggesting you change doses outside the scope you've been given though, best to check.