Aloha JohnA,
My answer would be whatever is needed at the time. Yes, in later levels there aren't active exercises and it focuses on the sitting meditations. Even at this level, there are times when the active exercises are where one needs to be.
After you've done Levels one and two for a while, and are doing pretty well physically, consider doing the Virtual Compass from Level Two - not only for the best direction to face for your current session, but for the best exercise/meditation for you at that moment. Trust what you get and do it - even if it's one that you'd rather not do.
Some will think I'm ducking your question, but I think you'll understand what I'm saying. There is balance in everything: yin/Yang as well as passive/Active meditation.
Much Love, Shawn