I think you misunderstood this. Let me rephrase the above definition to make it easier to parse:
"A foreign infringing site is a FOREIGN SITE for which it is true that (1)... (2)... (3)..."
FOREIGN SITE is defined in section 101 as "an Internet site that is not a domestic Internet site".
DOMESTIC INTERNET SITE = "an Internet site for which the corresponding domain name or, if there is no domain name, the corresponding Internet Protocol address, is a domestic domain name or domestic Internet Protocol address". It is open to interpretation whether a site with a US and non-US domain is a domestic site.
"A foreign infringing site is a FOREIGN SITE for which it is true that (1)... (2)... (3)..."
FOREIGN SITE is defined in section 101 as "an Internet site that is not a domestic Internet site".
DOMESTIC INTERNET SITE = "an Internet site for which the corresponding domain name or, if there is no domain name, the corresponding Internet Protocol address, is a domestic domain name or domestic Internet Protocol address". It is open to interpretation whether a site with a US and non-US domain is a domestic site.