DanMP said:
The text I colored in red seems to imply that a clock that revolves around a rotating massive object with the same angular speed (seen by a distant observer) as the dragged frame, would have no kinematic time dilation due to the rotation the distant observer sees.
It's more complicated than that.
First, consider the simpler case of a non-rotating, spherically symmetric massive body. Spacetime in the vacuum region outside this body is described by the Schwarzschild metric. This metric has a timelike Killing vector field--the term for this is "stationary"--and this KVF is hypersurface orthogonal--the term for this is "static". Note that in an earlier post, "has a timelike KVF" was called "static", but that's really not correct; the KVF also has to be hypersurface orthogonal, which basically means the gravitating mass can't be rotating. Since you're interested in the case where it
is rotating, we have to be careful to distinguish "static" and "stationary".
Now suppose we have a test body in a free-fall circular orbit around the non-rotating massive body. If this body exchanges light signals with an observer at rest at infinity, the observer will calculate that the body's clock runs slow compared to the observer's clock. If we call this "time dilation", we can in the static case, for convenience, split it up into two pieces: gravitational and kinematic. The split is easily visualized: gravitational time dilation depends only on altitude above the object, and kinematic time dilation depends only on speed relative to the object. However, if we want to be rigorous, we have to define exactly what "height" and "speed" mean in terms of the known properties of the spacetime.
We do this as follows: we use the integral curves of the timelike KVF to define "points in space"--each curve corresponds to such a point (more precisely, to the worldline of such a point--you can think of each such curve as the worldline of a hypothetical observer if you like). Each point then has an altitude, defined as its areal radius ##r = \sqrt{A / 4 \pi}##, where ##A## is the area of a 2-sphere centered on the massive body and containing the point. Gravitational time dilation then depends only on ##r##.
We then define "speed" as the speed of an object relative to the points in space--i.e., relative to the hypothetical observers whose worldlines are the integral curves of the timelike KVF. So, for example, we can imagine a set of such observers that each occupy one of the points along the circular orbit of the test body described above, each of whom is measuring the speed of the test body as it passes by. Since the orbit is circular, all of these observers will measure the same speed. The kinematic time dilation of the body is then just the usual SR time dilation using this speed.
Now suppose the massive body is rotating. We assume that this means spacetime in the vacuum region outside the body is described by the Kerr metric (note that nobody has actually proven that this is the case, but it's a convenient assumption and should be at least reasonably accurate). The Kerr metric is stationary, but not static--it has a timelike KVF, but the KVF is not hypersurface orthogonal. Does this make a difference to the above, and if so, what?
It turns out that, as far as defining "points in space" are concerned, it makes no difference. The integral curves of the timelike KVF are the same as for the non-rotating case: they are worldlines of observers at rest relative to the center of mass of the rotating massive body. And each point in space still has an "altitude" which determines the gravitational time dilation at that point; the only difference is that now the "altitude" depends, not just on the areal radius ##r##, but also on the colatitude ##\theta## (basically, ##\theta = 0## denotes the "north pole" of the body, ##\theta = \pi / 2## denotes the "equator", and ##\theta = \pi## denotes the "south pole"). But the key point is that these worldlines
are not rotating: they are still at rest relative to the body's center of mass, and relative to the observer at infinity as well.
We can also still define "speed" as we did before--speed relative to observers at rest. So we still have well-defined notions of "altitude" and "speed". But we do have a problem: we can no longer split up the total time dilation into a "gravitational" piece that depends only on altitude and a "kinematic" piece that depends only on speed. And one way of looking at the reason why is the thing you pointed out from the Wikipedia article: the state of motion that has "minimum time dilation", for a given altitude relative to an observer at infinity, is
rotating around the massive body (because of frame dragging), so it's not at rest. (Note that in the non-rotating case, the "at rest" state was also the state of "minimum time dilation" for its altitude--only gravitational, no kinematic.)