Actually there has been many studies on the insulin levels and response of 'normal' healthy individuals. The range for fasting and post meal are well documented. So the changes in fasting/insulin response is quite obvious when there is metabolic dysfunction as described by Dr Joseph Kraft. And there are various independent studies that sees similar patterns. And on a separate note, chronically elevated insulin is not necessarily benign although it may not have the acute toxicity of elevated glucose.
Instead of worrying that our pancreas will forget how to produce insulin after fasting, given how little functioning beta cells are left upon diagnosis, I am more concern that the remaining beta cells gets exhausted with the excessive demands that is continually placed upon it.
The alternative view presented is that resting the beta cells thru low carbs and intermittent fasting allows some recovery/restoration. Of course at this point there is disagreement regarding the success of this approach. But it makes sense to me and I see significant improvements.
Tim Noakes also have this infographics.