Not to mention the fact that many diabetics need to check their blood sugar several times a day, which could introduce a lot of wear and tear on both the glucometer and the iPhone.
I remember when these machines cost several hundred dollars, were difficult to calibrate, and about the size of a netbook, but most glucometers these days are small and can be purchased for as little as $10.
The ability to record and track blood glucose levers over time is a "nice to have" feature, but this data could also easily be stored on the device and transferred to a computer later via a bluetooth or mini-USB connection.