Shu Sheng said:
... a collapsing supermassive black hole ... eating the entire universe...
Maybe I'm wrong, but that part sounds to me like a round-about way of describing the observer's experience of a classic "big crunch",
in a spatially finite universe running according to the standard LambdaCDM model, that just happens to be contracting rather than expanding.
What would be the observational difference for people living in a galaxy within the event horizon of an extremely large BH and people in a galaxy that formed part of a collapsing Friedmann universe?
Shu Sheng said:
... released what it absorbed... this an infinite cycle of death and birth of universes...
that part is harder to imagine. Why would a contracting universe reach a maximum density and then re-expand? How could there be an "infinite cycle"?
Why would an expanding universe like ours (especially with our cosmological curvature constant Lambda) ever start contracting?
Let's not worry about "infinite cycle" for now, and try to understand a ONE-TIME occurrence of what you are talking about. Imagine that there is a contracting universe---never mind how it got to be there or how it came about. How would a contracting universe reach a maximum density and start to re-expand looking like the familiar LambdaCDM universe that we see? What would be the observational consequences, that astronomers could look for, to test the idea?
Shu Sheng, I would suggest you read the paper called "LambdaCDM bounce" by Yi-Fu Cai and Edward Wilson-Ewing. As I recall it was posted on arXiv.org in December 2014. It is the top hit when you google "LambdaCDM bounce".
At this time, with our limited physical knowledge, don't try to think about "infinite cycle". Just try to imagine clearly how there could have been a bounce at the start of the expansion of the universe we now see expanding. If it happened, shouldn't there be some detectable traces of it?
Yi-Fu Cai and Ed W-E have been thinking about that.
I will google for you and get the url, in case you want to check this out.
This link is for the full article:
http://arxiv.org/pdf/1412.2914.pdf
This is for the short summary:
http://arxiv.org/abs/1412.2914