I am currently treating myself with exposure therapy by using diabetes finger pricks, so far so good. I've also discovered that if I use a sterilised safety pin in place of a pricking device, I get no adverse reaction at all. I think it must be the medical nature of it.
It could be a major weather event, system failure, inflight emergency.
In regards to this, my local AME has the same phobia as me and he has been flying for decades. A needle phobia is one of the only phobias that can cause fainting, it is not anxiety based, it is a fight or flight reaction. At a fitness review, the AME said that as I did not lose consciousness or sight, incapacitation is less of a risk as initially thought. I have been in many situations where I have been anxious or stressed and I have never even remotely thought I was going to lose consciousness. It's frustrating but I do understand the authorities stance, the most frustrating part is that I know of people who have the same issue as me and they got their Class 1's with little issue. Even the cardiologist deemed me fit.