If you move to a low carb diet you'll probably need even less insulin, but don't worry about that - it's really not a problem. After all, the ultimate would be to need zero insulin - and I doubt anyone here would complain about that!!!
Your levemir should, in theory, be covering the background insulin you need without any food - so the theory being that if you ate nothing for a day, your blood sugar would stay at a nice normal level. This is actually well worth trying out sometime - have a day without any food and check that the basal amount is correct.
After that, you're injecting fast-acting insulin to cover food, primarily carbs. So if you eat fewer carbs you inject less insulin. You may well find that if you go low-carb you need to take small amounts of insulin to cover any protein you eat; I and many others on here find this. All of this is down to experimentation, but the great thing is that because the inputs are so small (i.e. small amounts of carbs and small doses of insulin) it's relatively easy to stay in good control while you learn your own reactions to it.
I know that on days where I don't eat a lot and have few carbs I can somtimes get by with 1 or 2 units of fast-acting for the entire day (before I went low-carb I'd need 30-40).
You may also find that after a period of adjustment, your basal dosages need to change as well as your insulin sensitivity improves. I found after a few weeks of going low-carb paleo I had to drop my background doses by about 15%.
There's no need whatsoever to worry about ketones. Ketosis through low-carb diet is a perfectly normal state for the body to be in, and is worlds apart from ketoacidosis (which is the scary one). Honestly, this is not something to worry about in the slightest. You can be in ketosis pretty much all the time on a low-carb diet, it's not doing any harm at all.
The other thing I'd strongly recommend is to make the actual foods you eat as unprocessed and unrefined as possible - think veggies, meat, fish, eggs, nuts and seeds. Food quality makes a huge difference, and a low-carb diet of natural foods is far better than one made up of processed stuff.
Finally, bear in mind that weight loss essentially comes down to eating fewer calories than you need. Going low carb will potentially help in various ways (it's great for controlling appetite, will help improve your insulin sensitivity etc.) but ultimately if you eat too much you won't lose the weight. This is another reason to try to stick to real food - it's far harder to overeat on steamed veggies and lean meat than it is on heavy cream and hard cheese!
Good luck with the diet and please do post back with any more questions. I'm sure others will chip in with advice as well!