Your assumption is correct. Cumulative upkeep says Pay X, if you don't then sacrifice this. The suit says this can't be sacrificed. So when asked to pay you say no Cumulative upkeep says then sacrifice and suit says nope not happening and Cumulative upkeep cries itself to sleep.
It would be very different if Cumulative upkeep said sacrifice or pay X. The suit says you can't sacrifice so the only option available is to pay.
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There are two fairly interesting cards, one being Morinfen, another being Assault Suit.
so... Assault Suit makes it you can't sacrifice it. What now?
My theory is that you just don't pay the upkeep cost, and you just can't sacrifice it. It'd be disappointing, but likely :/
It would be very different if Cumulative upkeep said sacrifice or pay X. The suit says you can't sacrifice so the only option available is to pay.