DrStupid said:
I do not see the circularity.
Why do I need to assume that? I can also calculate the shape assuming that the Earth doesn't rotate. The comparision of the result with experimental observations will show that my assumption was wrong and that the rest frame of Earth is in fact rotating.
The circularity is that you need on the one hand an inertial frame which is operationally defined by the Lex I, for which you need the notion of a free particle, i.e., a particle which is not subject to the action of forces. To define forces you need Lex II which uses the definition of an inertial frame.
The resolution, also in view of the hitherto most comprehensive spacetime model, which is General Relativity, in my opinion is that you must start with a postulate on the spacetime model and then use it to find operational realizations of inertial reference frames. In Newtonian physics you start with absolute space and time, which however cannot be operationally defined, and indeed there's no way to distinguish different inertial frames, which is due to the fact that the symmetry group of Galilei-Newton spacetime is the 10D Galilei group of transformations. Having identified the symmetry group of the spacetime model you can reconstruct this model (this line of thought you can trace back to Riemann and Klein's Erlanger program in the mathematical foundation of geometry (or rather different kinds of gemoetries), which was worked out famously later by Noether in her famous 1918 paper on symmetries and conservation laws).
The next step in the development was famously Einstein's solution of the problem with the lack of Galilei invariance of Maxwell electrodynamics on the one hand and the failure to establish a preferred reference frame concerning electromagnetic phenomena on the other hand. Many physicists have been thinking before that this is the long-sought possibility for an operational approach to define Newton's absolute space and time as a kind of rest frame of the conjectured aether. This was disproven around this time (around 1900) by various experiments, including the most famous Michelson-Morley experiment but also the Trouton-Noble experiment.
Einstein just reinterpreted all these failed attempts by just assuming the full validity of the special principle of relativity but making it compatible with Maxwell electrodynamics. He found out that all you need to assume in addition is that the speed of electromagnetic waves is independent of the motion of the source of the waves relative to any inertial reference frame, and of course he used this to derive the Lorentz transformations and this finally lead Minkowski to construct the corresponding spacetime model, the Minkowski space as an affine pseudo-Euclidean 4D spacetime.
The last (yet) necessary adoption of the spacetime model then was Einstein's attempt to incorporate gravity into the relativistic picture lead him to the discovery of General Relativity in using the (weak and strong) equivalence principle. This lead to the reinterpretation of the gravitational interaction in terms of a pseudo-Riemannian manifold, where the inertial frames are only definable locally with the general covariance as a gauge symmetry, as we'd interpret it today in view of our experiences with gauge theories in the modern sense as a mathematical tool to localize global symmetries. In this case what's "localized" is the Lorentz group, and as long as one considers only the macroscopic physics of classical relativistic (continuum) mechanics and electrodynamics you are able to reconstruct Einstein's general relativistic spacetime model as a Lorentzian (pseudo-Riemannian manifold with a metric of signature (1,3) or equivalently (3,1)).
The operational definition of a local inertial reference frame from the point of view of GR is a freely falling body with a non-rotating tetrad (Fermi-Walker transported) defining this frame. The extension of this local inertial frame is determined by the scales over which tidal gravitational forces can be neglected. A nice example of such a local inertial reference frame is the International Space Station, which as far as I know is the best place to make microgravitation experiments, i.e., the best operationally defined local inertial reference frame we have today.