Finally, the idea that the gravity of the Moon lifts the water directly suffers the problem that lifting water would create a vacuum at the bottom of the ocean, which won't happen-- but if the equipotential is raised, the water level will try to rise all the same, it will simply rise via lateral currents. So the gravity does "lift" the water, but it does so by piling it up via sideways motion. This is also what happens in a water wave at the beach-- the water doesn't "lift" as if it was leaving a vacuum under it, but it sure does rise up over you as you stand there. It does so via lateral currents that pile it up, and in the case of tides, the need to do that comes from the lifting of the equipotential surface. Remember, the amazing thing about gravity is that it does not care the mass of the objects it is moving-- regardless of that mass, if there is not force balance, motion will result.
To clarify this, let's imagine an absurd but telling scenario. Let's say you have a huge lake, and somehow you create an extra downward gravitational force on one half of the lake, and a reduced gravitational force on the other half of the lake. All the gravity is purely vertical, none of it is horizontal. What will happen? You might think that since upward forces can't directly lift water without leaving a vacuum underneath, and since downward forces can't squeeze water any significant amount, essentially nothing would happen to that lake. But that would be wrong, because the new forces create a new equipotential surface that is lower on one half of the lake and higher on the other half, and so that's what the surface of the lake is going to try to follow. It will take time to reach that configuration, so if the gravity is periodically flipping which side is raised, and there is not time to reach the new equilibrium, there will be perpetual sloshing going on. Also, if there is a big island in the middle of the lake, the sloshing pattern will be affected. But at the end of the day, the driving of the sloshing is still going to be the raising and lowering of that equipotential surface, which is going to look a whole lot like "lifting the water", even though the water will mostly be moving sideways (due to internal pressure forces in the water) in its efforts to reach that equipotential shape.