A relationship where friends only exchange gifts

I sometimes find myself contemplating the act of exchanging gifts between friends. There's a friend of mine who, since taking a leave of absence, rarely initiates contact. However, they do send gifts on special occasions like Pepero Day or White Day. At first, I'd just accept them and reciprocate, but over time, I started to overthink things. I wondered if it truly holds meaning to exchange gifts only on holidays when we barely catch up otherwise. So, after some thought, I decided to decline the gift this time and let them know I'd gratefully accept their kind thoughts instead. It's not that I dislike gifts, but the idea of exchanging them formally in a situation where we hardly communicate felt a bit burdensome. Of course, I appreciate the sentiment, but the thought of having to exchange gifts every time also lingers, and now this dynamic feels a bit awkward. Isn't it more important in a relationship to check in on each other and show interest regularly, rather than just through gifts? What would you have done in this situation? Is it okay for me to just accept their thoughts like I did?