Meditation == Active Exercises.
Think of each as a Yin/Yang aspect, both will balance your Yin & Yang, but one will work on an aspect a little more than the other.
Meditation will balance your Yin/Yang from a more 'passive' (Yin) point and Focus/Concentration & Mental 'Power' is a little more emphasized here, whereas Active Exercise balances Yin/Yang from a more 'active' (Yang) point and Healing & Physical 'Power' emphasized here.
It's almost necessary to do both to progress to 'higher' "levels" (though there are no absolutes, save for Oneness/Emptiness). If you're serious about learning to heal others, you'd definitely want to do the Exercises, since the Level 2 Healing 'techniques' are more 'active' based. (if that makes sense)
~Z
