Hi Margaret,
Welcome to our forum, although there must be better circumstances in which to meet?
I'd agree with the points LadyJ made, although I think 7.7%HbA1c is actually equivalent to a blood glucose reading of over 10mmol/l. Too high in other words.
The dietary advice given to you is utterly nonsensical, as you rightly point out. The crucial point is that you must lower your body's need for insulin, which will in turn lower your insulin resistance and assist your efforts to lose weight. In order to reduce insulin demand, you must reduce carbohydrates in the diet.
Your point about cholesterol is also well made. The largest epidemiological trial yet carried out involved thousands of Parisian women, who appear to live longer if they have higher cholesterol levels!
I think your HDL is a little low, and your LDL a little higher than ideal. Once again, however, both of these measurements will improve if your serum insulin levels drop.
As I'm sure you've already guessed, a low carbohydrate diet is just the ticket!
All the best,
fergus