Most people with type 2 diabetes process carbohydrates just fine. In fact, it would arguably be BETTER if people with T2 weren't able to process carbs as that could possibly limit the amount of glucose in their blood. The difficulty most people with T2 have is using glucose as energy. For one reason or another (usually insulin resistance) that process is inhibited.
I'm sure we'd all agree that a low-carb diet is effective at addressing the acute effects of hyperglycemia, but does that directly equate to addressing the chronic effects of insulin resistance and type 2 diabetes? If that were true, it would imply that LCHF only needs to be temporary and you could theoretically revert back to a higher carbohydrate diet after a certain point.
Some people actually do experience this and, in-fact, become less insulin resistant. HOWEVER, is that the direct result of eating minimal carbs, or is it the direct result of losing body fat which could be achieved through calorie-restrictive diets? In most cases, I'd dare to say the latter.
Ultimately, the dilemma is deciding if you want to avoid carbohydrates for the rest of your life, or if you're comfortable taking medication. I think you'd be surprised how many people would choose the medication.
In conclusion, what I'm saying is fairly simple: a LCHF diet yields quick and quantifiable results which makes it very attractive. Furthermore, it's a diet many people find easy to follow. However, there's nothing to suggest that the diet DIRECTLY aides in insulin resistance. Only the indirect weight-loss benefits (that could be achieved through other dietary methods) have been shown to reduce insulin resistance and primarily in overweight individuals.
In short: A LCHF is a "Quick Fix" to high blood sugar, but it's not necessarily a long-term fix for diabetes.