Fair points all. I'd like you to address my concern about users posting information that could be construed as copyright-infringing but clearly isn't (such as a negative review). What protections are there for those posting the information and who is to stop a judge from ruling unfairly on the issue?
There is nothing that can stop a judge from ruling unfairly on any law - the remedy is the appellate process.
That being said, just on a quick browse of the bill, I have found a few things helpful to the potential targets:
1) FIRST AMENDMENT- Nothing in this Act shall be construed to impose a prior restraint on free speech or the press protected under the 1st Amendment to the Constitution.
6) MISREPRESENTATIONS- Any provider of a notification or counter notification who knowingly materially misrepresents under this section--
(A) that a site is an Internet site dedicated to the theft of U.S. property, or
(B) that such site does not meet the criteria of an Internet site dedicated to the theft of U.S. property,
shall be liable for damages, including costs and attorneys’ fees, incurred by the person injured by such misrepresentation as a result of the misrepresentation.
(C) DEFENSE- An entity against whom relief is sought under subparagraph (B) may establish an affirmative defense by showing that the entity does not have the technical means to comply with this subsection without incurring an unreasonable economic burden, or that the order is not authorized by this subsection. Such showing shall not be presumed to be a complete defense but shall serve as a defense only for those measures for which a technical limitation on compliance is demonstrated or for such portions of the order as are demonstrated to be unauthorized by this subsection.
Are you of the opinion that more laws limit freedom or increase them?
I am of the opinion that this law provides an enforcement mechanism under Federal statutory law that already existed under common law. The statute, however, provides several explicit provisions that are more favoirable to the websites than the common law would necessarily provide. As there is not a freedom to infringe and this law is targeted at infringement (though I do see a few references to theft

), I do not see the limitation on freedom.
Do you support big government?
The only "big government" in this statute is giving the government tools to fight foreign websites. Most of the statute deals with disputes between private parties.
Edit: Your assertion that the named websites care enough about their users to defend their posting of content is laughable, however. You'd see almost every single video game video on YouTube subject to removal by this law. Also, that same website already includes methods for copyright holders to remove infringing content, without putting any money at stake to begin with. Why isn't this something that can be worked out privately? What real benefit does this law provide that isn't already provided for? Can you give specific examples of websites that need this kind of regulation right now?
First, if you are going to call assertions laughable, you may want to request that the Red Diamond be removed from this thread.
Most website business models want a lot of users and eyeballs, so accommodating the users is valid.
As to video game videos, I think playthrough videos are fair use and if I am a gamemaker, it would be silly for me to want such content taken down - it is generally free advertising. If you are talking about access to the game, then that is another matter and is a fair object of a takedown. If I am Youtube, I would go approach the video game companies and get the authorization to allow such content. If a specific company balks, then there are methods to filter for such content and remove it.
As to working things out in private - that is what one hopes happens. But without a legal enforcement mechanism, then the infringer has no incentive to work it out in private. Are you suggesting we get rid of laws on enforcing/regulating home loans or laws enforcing/regulating medical malpractice simply because it can be worked out in private? This statute just lays out some specific ground rules for what had been a murky area of law that could still be enforced through the courts without a statute.
As to specific websites, I think there are plenty of willful infringers not located in the U.S. (particulary when it comes to movies, music, and porn). Stateside, there is less of a problem, because the U.S companies were already easy targets to go after under murkier aspects of common law. This statute just lays out some ground rules, some favorable to the rightholders and some favorable to the websites.