I think your use of the word "cute" is a bit disingenuous and at odds with the conclusion you draw. "Cute" implies misleading, whereas the scenario you outline isn't misleading at all.

It makes total sense to start where they are starting; they'll get teams of data in a very short space of time (from diabetics and non-diabetics alike) and be able to iterate quite quickly from there.

As a non-diabetic, I want this so much. The impact of sugar and insulin on health is finally getting the attention it needs and I think this could be the innovation that makes health trackers actually useful.