My dream diabetes device would be a device as compact as an iPhone. It would receive BG readings wireless from small sensors embedded in my skin. The device would allow me to record all my BG readings in real time and provide graphing and analysis via an app. The app would have a scanner--may be using the device camera— to use for scanning a bar code so that I don't have to enter nutritionally. The app would use nutritional information and BG readings for trending analysis and to guide how my pre-meal bolus or basal insulin should be adjusted to meet my diabetes management goals. The app would suggest the bolus and then prompt me to send that information to my insulin pump. All my data -- BG, nutritional information, insulin -- would be kept in my health record (PHR) and easily shared with my diabetes care team.
I don't think this is a dream. I think this could be done today.