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In terms of the liabilities it isn't really any different to a pacemaker - if it fails, the person most likely dies. The difference here seems to be it's just solo hackers doing the work. Are any of the big medical companies looking into developing a device like this?

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There aren't really practical alternatives to a pacemaker though. I guess the FDA would even push for the automatic control to be safer than patient control before approving it.

Actually, it's quite different. Pacemakers are vital to minute by minute survival. Insulin pumps are convenient for long-term survival. If an insulin pump quits working, it's inconvenient, but you notice it in a few hours after a blood test and compensate. If an insulin pump mistakenly gives too much insulin, you die within an hour.

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