If he's not taking injected insulin and is seeing readings as low as 213, and his highest is still less than 300, I can say with certainty that his pancreas still produces insulin. A c-peptide test can be done to see how much.
I can also say with certainty that whatever insulin his pancreas is still producing isn't enough and insulin does seem like a good idea. Whether he has to take it forever or not, no one can say.
He's still a type 2. He's a type 2 with beta cell exhaustion.