Tati, do some searching in the forum on "Dawn Phenomena", if you don't already know what it is. In short, it's a glucoblast from the liver when waking up, the theory being the body getting ready for action.
DP wreaks havoc on some diabetics. I have it bad. A pump is nearly the only way to really get it under control (well, and still eat pretty normally).
Also, coffee raises BG in some people (again, I'm among the cursed!). If you have these problems, and are not treating diabetes with insulin directly, there's not much you can do about it.
After 15 years of quite variable control and then going completely off the reservation for about a year and a half, I voluntarily chose to change to treating my T2 D with insulin, and dumped all the other meds except for metformin. It was the best thing I have ever done in my life, only exceeded by marrying my wife and having my kids.
The bottom line is, oral meds are a very blunt instrument. You have very little control at all, so must "go with the averages". With insulin, you can "think like a pancreas" (Gary Scheiner's book), and "act like a pancreas" (Dave's rhetorical variation). With the most advanced technologies for measuring BG -- a Continuous Glucose Monitor -- and administering insulin -- a pump -- you can achieve close to normal BG metabolism/levels, and to many of us it's a relatively minor burden.
Although I still have enough pancreatic function that, with oral meds, a very restrictive diet, and a vigorous exercise program I could achieve good BG averages (read: a1c numbers), and make my doctor happy, I still wouldn't be knowing how much of a roller coaster my BG would be.
With insulin administered smartly, I can have an In 'n Out Double Double for lunch (my once a week treat for lunch, then back to rabbit food :-)), never go over 135, and be back down in the 80's by three hours postprandial.
With no treatment at all (insulin or meds) but just immediate vigorous exercise after lunch, I'll shoot up to over 200 every time, and take 4-5 hours to get back down under 120. With beta cell stimulants (I used to take glipizide), I'll still soar to 180 or so, and eventually get back down to the 80s within 4-5 hours -- but I'm usually having another meal by then.
The only way to really fully treat this disease is with insulin, no matter what type, or stage, one is in.