What's the debate about Newton's bucket argument? I visited some other QA threads about this topic, and I don't understand why people think it's mysterious that the bucket knows about its rotation.
If a non-rotating bucket is all there is in the universe, then, initially, all the parts of the bucket are at rest wrt to each other.
But if we want to rotate that bucket with an angular velocity $\omega$, then we basically require the different parts of it to have relative acceleration wrt each other. Because if we divide the bottom of the bucket into many concentric rings, then each ring would've an acceleration $\omega^2 r$ towards the center, depending on the radius $r$ of ring. This means that the rings have relative acceleration wrt to each other. Laws of physics would take different forms for people standing on different rings. Hence, a rotating bucket is a collection of non-inertial frames having relative acceleration.
But non-inertial frames are supposed to detect acceleration in Newtonian physics. So what am I missing?
 A: In Newtonian mechanics (and also relativity and quantum mechanics), a hypothetical physicists sitting in the bucket would definitely be able to do an experiment to detect that the bucket is rotating. I'm not sure why that would be mysterious. It should be noted that the velocities of the particles involved (relative to one another) are a fundamental part of the system. You cannot describe a physical situation using only the mass and position of the particles. You need to include their relative velocities. For this reason, a bucket sitting alone in an empty universe is fundamentally different from a rotating bucket sitting alone in an empty universe.
A: Suppose that instead of talking about the bucket's angular velocity, you talked about its linear velocity. Then it would have indeed been the case that you can't speak of an absolute linear velocity in an empty universe. The paradox is why the same logic doesn't apply to angular velocity, since they're both "velocities".
Of course, within the formulation of Newtonian mechanics, this isn't confusing. Newton's laws tell us unambiguously that there's no such thing as absolute linear velocity, but there is such thing as absolute angular velocity. Newton's bucket argument is really a metaphysical question, asking why it is the case that we have laws that seem to treat angular velocity and linear velocity differently. 
A: Newton thought that there could only be a meniscus on the bucket if the bucket was rotating relative to something. He took it to be a demonstration of the existence of Absolute Space, because his equations were formulated in terms of Absolute Space. Mach may or may not have discussed whether absolute space can be replaced with distant stars (Mach's principle was formulated by Einstein, but this was an exercise in thought, and never made precise).
The problem only exists in Newtonian mechanics, because the formulation depends on an unobservable concept, Absolute Space. Inertial frames are assumed infinite, and in uniform motion relative to each other. It is resolved in general relativity, without reference to either distant stars or Absolute Space, since we can replace Newton's first law with


*

*An inertial body will locally remain at rest or in uniform motion with respect to other local inertial matter


This can be used to define inertial frames locally. 
(As for what you are missing, you appear to be using a relativistic concept of inertial frames, not a Newtonian one, so you don't see the problem).
