What does it mean to get permanently suspended

To an extent, yes.

If you set your console as your Home Xbox before you received the suspension, then you’d still be able to play certain digital games offline. Games on physical disks should work either way (as the licence doesn’t need to be verified), but online features would be unavailable.

Anything else that requires an internet connection to Xbox Live, such as YouTube, Netflix, the store and purchasing/installing games, playing online, etc would unfortunately be inaccessible for the length of the ban (so in this case, permanently/indefinitely).

Only your Xbox account is affected by this, and any subscriptions (eg. Game Pass Ultimate) are automatically cancelled with no further charges.

This guide answers most questions regarding enforcement in more detail:

Xbox enforcement action FAQ | Xbox Support

Hope this explains it.

A permanent suspension means your account has been permanently banned from connected to the Xbox servers.

So has my account been kick off line for good Xbox??

I think there is based on the amount of people who have been posting about the same issue. I have a feeling the permanent suspension is just acting as a default notification for everyone and not everyone who has been suspended today is actually permanently suspended, but until the site updates to show these suspensions, there's no way to know.

It's most likely not permanent, but there is a suspension. There's an issue with the notification system showing everyone they have a permanent suspension.