My understanding is that the issue with most (but not all) T2s is in fact, insulin resistance.
People with insulin resistance usually OVER-produce insulin. And this is a problem because insulin can actually be a pretty harmful hormone. Many of the complications of diabetes are actually caused by too much circulating insulin rather than too much circulating blood sugar.
In the first instance, insulin blocks fat metabolism and promotes fat storage. If we accept that those with insulin resistance overproduce insulin, then clearly, the weight gain associated with T2 is likely to in fact be a symptom, rather than a cause of the condition.
Second, insulin plays a role in cholesterol synthesis in your liver. The more insulin you have, the more LDL cholesterol your liver produces.
I think insulin also causes inflammation of the cardiovascular system as well, which leads to hypertension and other fun problems.
Therefore if you have a T2 who is insulin resistant and producing a lot of insulin, clearly it would be insane to add more insulin to the mix. It's like pouring petrol on a fire and is also unlikely to actually really tackle the issue of high blood sugar as you still have the underlying issue that the insulin is not being used efficiently enough to regulate blood sugar.
It makes much more sense in the first instance to tackle the issue of insulin resistance and see if it's possible to achieve both normal insulin levels AND normal blood sugars in a T2.
There do, however, also seem to be T2s who aren't insulin resistant but simply for some reason or another don't produce enough insulin. These people probably should be put on insulin rather than medication that forces their pancreas to burn itself out by producing more.
It's also worth noting that the points made about the impact of insulin on your body also apply rather strongly to T1s as well. Because the insulins we use to inject are imperfect, you are likely to inject more insulin cumulatively than your body would produce under normal circumstances - thus leading to the usual suspect complications. That's why everyone should be very cautious about the prevailing wisdom that MDI or the pump allow you to eat whatever you like. While this is true from a blood sugar perspective, it is probably worth thinking about whether there is a benefit in finding ways to safely reduce your insulin intake so you still have normal blood sugars but don't have the excess 'waste' that causes problems.