I was originally diagnosed with type diabetes two and a half months ago, and I am on two different diabetes pills. According to my blood glucose meter, my average daily sugar level is 126 mg/dl [7 mmol/L]. Am I to assume that I have achieved good if not excellent sugar levels?

It appears that you have indeed achieved blood sugars in the target range as described by the American Diabetes Association. The average of 126 mg/dl [7 mmol/L] is wonderful, especially if that includes some before and some after meal readings.

If you are not testing after meals blood sugars, I would urge you to do so. With type 2 diabetes, the biggest challenge is to make enough insulin, soon enough to cover the foods you eat. The recommended target for after meals is less than 180 mg/dl [10 mmol/L]. If you are able to stay within these targets, your hemoglobin A1c should also reinforce that by being less than 1% above the top normal range.

KS