You still need insulin to digest protein and for general living throughout the day, even when fasting. It'd be more accurate to say "if you don't eat carbohydrate, you need less insulin, so your insulin requirements may be met by your (degraded) pancreatic output."
On remission: if your Type II diabetes is in the early stages, and is largely due to lifestyle, then a lower carbohydrate diet could help you lose weight and improve insulin sensitivity. If your insulin sensitivity reaches the point where your pancreas' produced insulin is adequate (even for high-carb meals), then you've beaten the disease. This is the remission they speak about.
On remission: if your Type II diabetes is in the early stages, and is largely due to lifestyle, then a lower carbohydrate diet could help you lose weight and improve insulin sensitivity. If your insulin sensitivity reaches the point where your pancreas' produced insulin is adequate (even for high-carb meals), then you've beaten the disease. This is the remission they speak about.