Kit,
That sounds really frustrating. Neither of my cats will eat wet food; one has never even tried it. She just won't go near it.
My first cat was diabetic, so I understand some of what you are going through. I would think it's just most important that Esther eats, period. Even if it's not wet food, unfortunately as pet owners we can't always get them to do the "ideal" thing. She may have to be on insulin for the rest of her life, but that's not the end of the world.
I know you didn't ask for advice, but personally I would stand my ground at the vet, acknowledge that yes, wet food would be best, but it's just not happening, period. "So now that we've put that aside, what's the best we can do for my cat?"
Have they mentioned an appetite stimulant if necessary? One of my cats was given mirtazapine (remeron) as a kitten when he wasn't very food motivated. (Not sure if that would be an option for a diabetic cat, however.)