Wow. Your 'friend' is definitely a big old bully!
Hard to imagine someone saying you're being tricked into believing that pregnancy is a condition requiring hospitalization- when HELLO- you have a condition that makes a hospital a smart place for you to bring your child in to the world since you already love them and want you and them to have as safe and healthy experience as possible. That condition is not your pregnancy, and for her to not recognize your legitimate concerns about t1 diabetes is plain ignorant.
Also- I know you're another one that has suffered through first tri, and it's hard to imagine a more powerful way to tell your child you care than suffering through months of regular puking and pure misery (this is at least what I'm going through, and I think you too!) I had never really thought of it that way until I was visiting my sister and her husband told my little baby nephew after I puked "see the things that mothers do for their babies because they love them sooooo much". It was a little thing that I thought was so sweet.
That lady sounds toxic, rude, and like a horrible listener! My mantra (also a bit of wisdom from my Bro-in-law):
DO NOT ENGAGE WITH THE CRAZIES.
Good luck and know you're doing the right thing for you no matter what someone else says!