Berin's explanation hits on a bunch of seriously good points, but as a diabetic who's taken a very keen interest in the whys and wherefores of my disease, I think I can fill in some of the blanks here.
Firstly, it's important to understand that all carbs you eat will eventually boil down to sugars. The particulars vary based on the kind of carb, but I will start with the basics and get down to the specifics.
Increased carb consumption is going to inevitably lead increased formation of AGEs simply because there are more glycemic materials to make the AGEs with. The question becomes, how much of your carb intake is available as glycemic material? That gets a little complicated. You can get an idea by looking at the glycemic index of the foods you eat. The lower the index, the fewer glycemic materials are coming out of that food. So table sugar or white rice would give you a lot, but rye bread is going to give you a lot less.
Now, the hairy particulars: Glycemic index is completely dependent on what you eat together. A bowl of dry cheerios would have a relatively high glycemic index, but a bowl of cheerios with whole or raw milk (which has lots of fat in it) is going to have a much lower glycemic index, because the fat and protein in the milk will buffer how fast the carbs are absorbed, and even how many are absorbed at all. It doesn't make sense to stop eating a bowl of cereal for breakfast if you are still snacking on a Snickers at lunch. The available glycemic material in your body is not going to be significantly affected. The basic rule of thumb, though, is that the more fat and protein you are consuming with carbs, the slower those carbs are going to get absorbed.
Also, the 'tired pancreas' theory is indeed well known among diabetics; we refer to it as pancreatic exhaustion. It's a leading cause of type-2 diabetes, and even some cases of type-1 diabetes as well, where the pancreas is completely exhausted. Essentially, an organ being tired is roughly the same as a muscle being tired. If too much has been demanded of an organ for too long, it will be unable to keep up with the demands and simply conk out. The distinction here isn't between 'good' and 'bad' insulin, but rather one's insulin capacity. A healthy pancreas can excrete large amounts of insulin in a short amount of time, to properly respond to a high-carb meal. A tired pancreas can excrete less insulin, so it takes longer and longer for blood sugar levels to come back down. An entirely exhausted pancreas can excrete almost no or near no insulin, so for practical purposes blood sugar will never come down, since the person will have to eat again before the glucose from his/her last meal can be sunk.
