Richard, you're very close to the truth, but it is not actually the Earth which is fixed with relation to the ether. It is me.
Whenever I walk, the Earth rotates underneath me. You, on the other hand, move relative to the surface of the Earth. When I walk, it may look like I am moving relative to the Earth, but that is not the case. You see, as long as the Earth believes that I am walking on it, and it is not actually rolling underneath me, then all the physical laws are satisfied.
I can see where you would be mistaken. As I am completely stationary, and I have never left the planet Earth, the Earth does remain nearly completely stationary.