I can only comment in a general sense and on non diabetic situations. Nerve damage is often reversible, but it takes time. It has been observed that crush injuries on nerves which have resulted in a loss of function, the bending of an arm or wrist for example have naturally reversed after 6 months to 1 year and the function has been restored. More remarkable is recovery from situations where nerves have been surgically removed. A completely limp arm and wrist for example has recovered after one year to the point where chopsticks could be used. To quote a top neurosurgeon who was working on this case, 'it is as if the impulses have learned to take a different route to achieve the desired effect'. The majority of function has been been within the past couple of months of a 12 month period and progress seems to be at an accelerated pace. The patient has of course put in a good deal of effort though targetted exercises.
You may find the wiki page on general nerve injury interesting,
http://en.wikipedia.org/wiki/Nerve_injury as it will give some background. I'm afraid I know nothing of diabetic neuropathies but there are papers published on the web. There are many types but this particular paper, The Diabetic Neuropathies, Types, Diagnosis and Management,
http://jnnp.bmj.com/content/74/suppl_2/ ... &view=FitH states that, in the case of hyperglycaemic neuropathy,
"the symptoms, and slowing of nerve conduction, are rapidly reversed by improving glucose control." I don't know if that is what you have but, if you read a little, you can prepare some questions for the doctor. Generally they seem pleasantly surprised when someone does a little homework and asks pertinent questions.
I too have had various tingling feelings and loss of balance which have been ameliorated through stretching and balancing exercises so you don't have to go hammer and tongs on a treadmill. Many people seem to find calf stretching exercises useful for example. A physiotherapist should be able to give you some things to work on.