Looks like a lancet to me, I wonder how it changes the experience compared to a spring-loaded draw.
Read the last paragraph (0003) of the Background and then look at that watch device. If I could flip my wrist over, push a button, hear a hiss and 5 seconds later I can tell where my levels are, my day to day life, for the rest of my life, is made that much easier.
I can see why Google might be interested in doing this. They're already in the smart watch market, it's only a short leap into the world of medical devices if they invent a way to continuously monitor blood sugar levels (among other metrics) for the user.