Correct me if I am wrong, but I believe one develops Type 1 in this case from general organ failure, not simply because the pancreas itself is being exhausted.
Interesting: are you saying that people with Type 2 that progressively get "worse", will eventually become Type 1 diabetics for the exact same reason?
Forgive my asking again. I am a Type 1 diabetic, since age 7. I know that it is an autoimmune disorder. I find that (as seems to be the case with the original article), people tend to blur T1 and T2, and the causes/effects/treatments for each, and it can be mildly infuriating...
To greatly simplify, T2 is a matter of insulin resistance. The pancreas continues to produce insulin, it's just that the insulin produced becomes inefficient and an outside intervention such as medicine or exogenous insulin is needed. In terms of medicine, Metformin is one that's commonly prescribed. Again, to simplify, it basically makes the liver pump out less glucose into the bloodstream. It's actually considered a wonder drug (look up Metformin and longevity, makes you think...).
Generally, after a certain period, if done right, the T2 person will no longer require the meds and can be considered cured.
I'm not sure if pancreas can overwork itself to death by producing too much insulin. If it's not damaged by the autoimmune system it should be able to recover.