Despite the widespread success of convolutional deep learning frameworks in computer vision, significant limitations persist in medical image analysis. These include low image quality caused by noise and artifacts, limited data availability compromising robustness on unseen data, class imbalance leading to biased predictions, and insufficient feature representation, as conventional CNNs often fail to capture subtle patterns and complex dependencies. To address these challenges, we propose DAME (Diffusion-Augmented Meta-Learning Ensemble), a unified architecture that integrates hybrid modeling with generative learning using the Denoising Diffusion Probabilistic Model (DDPM). The DDPM component improves resolution, augments scarce data, and mitigates class imbalance. A hybrid backbone combining CNN, Vision Transformer (ViT), and CBAM captures both local dependencies and long-range spatial relationships, while CBAM further enhances feature representation by adaptively emphasizing informative regions. Predictions from multiple hybrids are aggregated, and a logistic regression meta classifier learns from these outputs to produce robust decisions. The framework is evaluated on the HAM10000 dataset, a benchmark for multi-class skin cancer classification. Explainable AI is incorporated through Grad CAM, providing visual insights into the decision-making process. This synergy mitigates CNN limitations and demonstrates superior generalizability, achieving 98.6% accuracy, 0.986 precision, 0.986 recall, and a 0.986 F1-score, significantly outperforming existing approaches. Overall, the proposed framework enables accurate, interpretable, and reliable medical image diagnosis through the joint optimization of contextual modeling, feature discrimination, and data generation.