Yes, it is getting way more complicated than it needs to be.
Right now you're on a sliding scale. Back when I was on a sliding scale, the scale took into consideration an average amount of carbs per meal, plus what you might need for a correction depending on how high you were before the meal.
Your sliding scale appears to be rather fixed. The problem is...it just plain is NOT working for you! As long as you stick with this regimen, you are either going to be chasing highs after meals, as well as dealing with those overnight lows.
I know there's quite a learning curve as far as counting carbs goes, but really, it only takes a few weeks to get the basics, and after a couple of months, one gets pretty good at it. My suggestion would be for you to start learning how to count carbs now (without necessarily changing your insulin regimen just yet) then, once you feel comfortable with counting carbs, work with your doctor to establish a new insulin regimen.
You've already pretty much determined that your morning highs are most likely rebound highs, since you've mentioned being low during the night. So I think your Levemir dose is still too high. The only way to test long-acting insulin is to fast. If your long-acting dose is correct, you should not go either low or high if you don't eat. You can test this with just one day of fasting, checking your numbers at intervals throughout the day.
The next thing to tackle is your short-acting insulin. As I've reiterated, the regimen you're currently using just isn't working well for you. You're always going to be either too low or too high when you take a fixed amount of rapid before meals without considering the amount of carbs you'll be eating. Once you learn how to count carbs, you work with your doctor to figure out an insulin-to-carb ratio (hopefully it'll be 1 unit to 10g carbs, as that's the ratio with the least amount of math to do!). But it could be 1:8, 1:12, etc. Then, you estimate the amount of carbs you'll be eating. Let's say you're eating 50g of carbs and your ratio is 1:8, then you'd take 6 units of rapid to cover your meal. The other thing you'd have to work to establish is your correction ratio. For me, 1 unit will bring me down about 30 points. So, if your goal was 120 before dinner, and you were at 150, and you were going to eat 50 grams of carbs, you'd divide the 50 g by your insulin/carb ratio (let's say 1:8), which would mean 6 units, plus you'd need one more unit to lower your bg by 30 points.
I know it sounds a bit confusing, but really...it's not all that difficult. Just as easy as the math TF is suggesting. And this way, your numbers would be much more even. Also...if you find yourself too high at any time during the day, you'd use your correction ratio to figure out how much insulin you need to bring you back to normal.
I'm not sure if you can get an insulin pump,Twokatss, but all of this is WAY easier if you can...you still have to learn this stuff, but then you program the pump and it does the math for you. Not sure if Canadian health care system will cover them for T2's, but it's definitely something to look into now that you're on multiple daily injections.
I hope I'm not overwhelming you with information...please feel free to ask about anything you don't quite understand. Ask as many questions as you need to...heck, you can ask the same question as many times as you need to...until you feel you understand this. I'm just sorely afraid that without some changes in your insulin regimen, you are always going to be chasing highs and lows, and that really can make you feel worn out.