Since I can declare war against any Ideology, what is the point of the second half of the “Isolationism” penalty?
Even though you can’t declare war, other players can still declare war against you. Once you are at war with another Ideology, you can choose to maintain that diplomatic stance as long as you want, regardless of whether the other player wants to revert to a less aggressive stance. While at war with another player, you may initiate Military Conflicts against that player at any region (keeping in mind the penalty described in the second half of the “Isolationism” penalty).