Given how impressed people were by the E-D's holodeck in "Farpoint," I tend to think it was a technology that wasn't practical for shipboard use until the early 2360s. I think it would therefore be anachronistic to have one on the Needle
. They'd have to make do with a video screen in front of the treadmill/exercise bike. Or maybe they have the 24th-century equivalent of Wii Sports.
Sure, we'll have tech that advanced long before the 24th century, but clearly they don't in the Trekverse. Perhaps WWIII and the Earth-Romulan War set back human technology in some respects.