Michael,
You have it correctly; you want to set the point gap with the feeler guage and then check with the dwell meter. While this process is usually easy with a new set of points, with a broken in set that you are trying to adjust setting with the feeler guage can be quite inadequate as there is usually some amount of material that has transferred across the point gap that can make them rough and hard to set via the feeler gauge.
Thus the dwell meter is an easy check on point gap.
