I've never heard that one. High blood sugar, among other things, leads to hyperinsulinaemia, which over time will lead to a decrease in insulin receptor
sensitivity, with a greater tendency of that to happen in muscle tissue.
Insulin resistance absolutely will make you fat. Insulin resistance does not effect adipose tissue at the rate it does muscle (I've never actually heard of insulin resistance in adipose tissue). If you become resistant to storing glucose (which then consequently become triglycerides) into either muscle or fat cells, where does it go? We simply excrete it? The fat cells do not become resistant, rather the excess glucose is converted to triglycerides and stored in fat cells. That's what fat cells do, they store energy reserves.
How many papers are there out there that show the relation of insulin resistance and metabolic syndrome (of which some of the symptoms of the syndrome include obesity and elevated triglycerides)? There are also published studies showing that a side-effect of metfomin in diabetics is weight-loss. Many studies on testosterone treatment show a reduction in central adiposity. A side-effect of restoring testosterone - restoring insulin sensitivity. From a purely anecdotal position, I know many diabetics, and I'd say less than 10% of the type II I know would be considered normal weight. Almost all of them are overweight or obese.
I understand the point you were trying to make about the pixie sticks, and yes, the refined sugars contribute to insulin-resistance, but once one becomes resistant, it's a compounding downward spiral towards weight gain. When you eat pixie sticks and your insulin sensitivity is normal, you are able to better metabolize the sugars, and not store them as fat. Of course abusing the pixies will lead to the downward spiral, and now that we've talked about them enough, the FDA will be banning them