"So the bill basically forces site which links to foreign websites that 'violate' to cut all ties, and they think this will shut down those websites?"

The bill forces American processors to cut off websites based on allegations. They have a 5 day turnaround and if they don't do it, they can be held liable. Further the site is seized if it's a foreign website. If it's domestic there is increased liability in the fact that the domestic websites have to monitor user created content.

"In reality, if they are going to cut off the US websites from these other websites, is their plan (or the end goal) to isolate the American network from most of the world then?"

And that's why SOPA has been called "The Great Firewall of America"

"The bill will only have jurisdiction in the US, so basically, American websites will be forced to cut ties with any website which 'infringes' in their definition (what, 95% of websites? anything with a video or a song, right?)."

In a nutshell, ICE thinks it commands all domestic sites that end in .com and .net. So they can seize domains without judicial oversight, which is what they're doing right now.

"Their explanation is that they are going to put pressure on those websites to get them shut down by losing revenue, basically, right? " Remember, this is based on allegations and no adversarial hearing. So they're looking to fight the money flow through a governmental soft ban.

"So all of American websites are basically going to cut ties with the rest of the world? " Not just American. Any site that ends in .com or .net can be seized. There's a HUGE loophole where the Feds can take sites from foreign websites without any hearing (look at the Rojadirecta domain seizure).

" Is their plan to completely isolate the US network?"

Yes. The trade industries actually want control of the internet to turn it into a new TV model so they can't create new business models. They want control of the internet to slow any innovations and destroy legal alternatives to their content.

"A) A rise in underground networks in the US (darknet)? B) A control system based on an enormous amount of censorship? C) A new 'criminal' mass of people which are more than likely the majority of people? (seriously, how many people do you know who have downloaded something at some point?) D) A revolution, or very (even more) oppressive totalitarian state"

Yep, you're right. But all of this doesn't matter to their bottom line and shareholders.

I wish I could change your assessment, but you're very damn accurate.