bcrowell said:
My own calculation has the virtue of using only ordinary tensor gymnastics, but summing the two effects is then clearly a completely ad hoc thing, which I'm not satisfied with.
Instead of parallel transporting \mathbf{L} along the timelike worldline of the orbiting gyroscope, you have parallel transported \mathbf{L} along a spacelike curve for which t is constant. The tangent 4-vector to the satellite's worldline is its 4-velocity, so the correct parallel transport law (see MTW) involves a directional covariant derivative,
0 = \nabla_{\mathbf{u}} \mathbf{L},
or, in component notation,
0 = u^\alpha \nabla_\alpha L^\beta.
If r and \theta are constant (plane circle), then the 4-velocity has the form
\mathbf{u} = \left(u^t, u^r, u^\theta, u^\phi \right) = \left(u^t, 0, 0, u^\phi \right).
Setting u^t = 0 gives your two equations, but, since \mathbf{u} is timelike, the time component of 4-velocity is never zero.
I suspect that parallel transporting \mathbf{L} along the correct \mathbf{u} will give the correct precession, so Thomas precession will not need to be added (for geodesics).