Here's my understanding on caffeine. Caffeine mimics insulin, so even if your blood sugar is high your insulin level will be low. This will cause blood sugar (not insulin) levels to be high. As long as the blood glucose is properly disposed of (ALA will help this) then the sugar will not enter the cellular level causing stored energy, aka fat. Check out Animalbolics Diet. He has a good grasp on insulin. A few small meals composed of Protein, some complex carbs or fruit (apple) and a caffinated beverage early in the day to keep insulin down. Then carb and protein load after workout to boost insulin to send that protein to repair muscle. Also, insulin sensitivity is only decreased by the body constantly having to process simple sugars. I may not be completely right, but that's my understanding from lots of study on the topic.
"Caffeine mimics insulin... " I don't see how you arrive at this conclusion if caffeine lowers glucose uptake while insulin increases glucose uptake. The two have opposite effects. For example, caffeine mobilizes fatty acids, while insulin has the opposite effect.
"This will cause blood sugar (not insulin) levels to be high." Here the results of studies have been contradictory. Some show no change in insulin levels while others show an increase in insulin levels as a result of caffeine ingestion:
"In the caffeine trial the serum insulin and C peptide concentrations were significantly greater (P < or = 0.001) than for placebo for the last 90 min of the OGTT and the area under the curve (AUC) for both measures were 60 and 37% greater (P < or = 0.001), respectively. This prolonged, increased elevation in insulin did not result in a lower blood glucose level; in fact, the AUC for blood glucose was 24% greater (P = 0.20) in the caffeine treatment group. The data support our hypothesis that caffeine ingestion results in a greater increase in insulin concentration during an OGTT. This, together with a trend towards a greater rather than a more modest response in blood glucose, suggests that caffeine ingestion may have resulted in insulin resistance." (1)
"As long as the blood glucose is properly disposed of (ALA will help this) then the sugar will not enter the cellular level causing stored energy, aka fat." This is exactly what ALA does: it increases cellular uptake of glucose. If this glucose is not converted to glycogen or immediately used for energy it will be stored as fat.
" Also, insulin sensitivity is only decreased by the body constantly having to process simple sugars." People don't know how insulin resistance is caused. Sugar makes it worse but is not the cause. Insulin resistant individuals can totally eliminate simple sugars from the diet and still remain resistant. The cause of the insulin signalling and glucose transport defects are much more complex than just being caused by sugar.
(1) Can J Physiol Pharmacol 2001 Jul;79(7):559-65
Caffeine ingestion elevates plasma insulin response in humans during an oral glucose tolerance test.
Graham TE, Sathasivam P, Rowland M, Marko N, Greer F, Battram D.