I agree with most of which you say, except this. Because there is the need for an actual court order (just like a warrant it needs to go through a judge), someone is going to act as a breaker for it. That is, you can't just wake up and decide to ban a dozen or so sites because you want to; there needs to be an actual legal reason for banning the site.
Also, how precisely is this censorship? You are banning a site because it is breaking an actual law, not because it bothers your ethics. Okay, technically it is, but that's not a legitimate reason to ban the site. It has to be violating copyright/trademark law. The site, as per its summary, must be encouraging or providing the means for others to pirate IP's. Please explain...
Except...
they're already arresting people for content that just passes through their sites -- not on it at all.
And the Supreme Court just approved warrantless searches.
Like they've already approved cops lying creatively to seek information and trick people. And declared cops can search your property without permission if the only barrier can be stepped over. And they can question you without reading you your rights.
The DoJ will take this law and farm out authority, and they'll stretch it just like they're stretching laws already in existence -- stretching to the point of not even resembling them. And when one of those cases, from someone rich enough to be able to afford something resembling justice, makes it to the Supreme Court, by then they'll have thousands of cases of precedent -- accumulated by attacking poor people who can't mount a defense -- and SCOTUS will decide that so long as they have suspicion of seeming misdoing, they can shut down the site, jail the owner, seize all the equipment... and never have to give anything back even if the person, years later and penniless, is found innocent.
And just like on the show COPS, where people have gotten used to seeing police brutality, and taking it for granted, the mere existence of the law will immunize the public against ever-wider application. And if there's another terrorist attack, some future president could pull a Bush and ignore the Constitution, declaring the law to be what he wants it to be, and tens of thousands of sites will be shut down because they can, for any reason that seems "patriotic" to them.
RG