There should be various factors before considering change from diet/exercise regime to medication.
These include overall progress of weight loss - seeing a marked improvement from the last assessment. In addition it depends also on how long you've been diagnosed as diabetic. There seems to be a number of GPs who are putting newly diagnosed patients onto medication, without giving diet and exercise a second thought or chance.
If your HbA1C is significantly up from diagnosis, say six or twelve months ago, then it's a fair option to consider medication, as potentially your changes in lifestyle alone aren't sufficient to help your control.
However, if there is a considerable improvement even if the 'ideals' haven't been reached, then if I were you, I'd consider continuing as you are and agree to review the position again in three months time. At the end of the day the decision to take medication is your decision, diabetes is a team based management structure, you being a critical member of that team.
Do you test your levels at home? If not I'd suggest asking for test strips to be prescribed, even testing once, in the morning is better than never testing between your six or twelve monthly reviews - there is a enough discussion here on that matter.
You also need to be realistic in your expectations and how you are feeling in yourself. If you are still lacking energy, drinking lots etc, then perhaps diet and exercise alone is not working and you need some assistance to get things working the way they should be.
As a type 2 going on medication to assist you isn't the end of the world, there are many type 2's who work hard at their diet and exercise and are taken off medication, it doesn't mean they are cured, but the results of their hard work and the assistance of medication helped them become self controlling.
However, knowing day-to-day how effective your managment is can't be stated highly enough.
Good luck, hopefully your hard work will pay off. Oh, and just so you know, even those of us with years of HbA1Cs behind us, still sweat it out about our results, perhaps it becomes more an issue of personal pride the longer down the journey we head?!