
Chris, the easy thing first: Fordyce Spots are merely a variant of sebaceous glands. We have these all over the body, they exist on the head of the penis, but are often most distinct on the underside of the main shaft of the penis. Fordyce Spots are usually slightly elevated yellowish or white papules or spots.
What you have mixed in with your normal skin colour is some pinkish areas, such as nearside on the head of your penis in the photo and towards the middle of the shaft of your penis.
I am wondering whether it is the light in which you took the photo but the skin on the shaft of your penis does not look healthy at all. If you like you could post another couple of photos, but if you can capture these in a strong daylight that would be helpful.
So, having the Diabetes will not help. I am wondering whether it is possible for you to see a health specialist such as a Dermatologist as it would be best to get a professional opinion of what is happening for the skin the skin of your penis?
The other general advice I would give is always try to minimise the amount of soap and other body cleansers such as shower gel that get onto the skin of your penis, clean it with water only if you can, when taking a shower, spend some time rinsing away any body cleansers that have gotten onto the penis with the running water. Then make sure the entire penile skin is completely dry when you get out of the shower.