Cure for diabetes?
No, since it isn't one entity, but several conditions sharing hyperglycaemia as a symptom but with a variety of causes.
Cure for type 1a (autoimmune), quite possible. We have far more tools now and are gradually developing a better understanding of whats going on at a genetic and cellular level.
It is certainly not true to say that there is no research being done.
There are many research projects some aimed at regeneration of the beta cells, others at stopping the autoimmune attack. There are also some projects (including one in the UK) aimed at finding a vaccine to prevent the autoimmune attack in the first place.
In the UK, DUK is part funding lots of relevant research. I started to list the projects but there were too many, all looking at little bits of the jigsaw . Kings College has a whole group of related studies as does the University of Bristol where Prof. Susan Wong aims to develop a vaccine.
(list of DUK funded research, not just type 1, there is also a lot of work on Type 2 and when I checked the medical research council funded studies I found it was, at present mostly concerned with type 2)
http://www.diabetes.org.uk/Documents/Research/Research project directory/RPD_2010.pdf
The JDFR are involved in helping fund many projects worldwide. The link is to a general explanation of the fields of research.
http://www.jdrf.org/index.cfm?page_id=113244
and there are the Faustman trials into the use of the BCG vaccine, partially funded by the diabetes 'community
http://www.faustmanlab.org/