If sarracenias catch an insect quite big, it may develop brown damage marks which lead to eventual rotting. As for a pitcher that has caught too many insects, that pitcher will flop down to the side, no longer staying upright and will eventually die and rot off. And as you said, yes, they rot their prey, but with the help of bacteria. Sarracenias get their nutrition by absorbing the resulting soup. It is true that water helps with sarracenia's digestion, but when you see species like flava that have a top leafy operculum covering the top of their pitcher opening, that means the pitcher doesnt want liquid inside it; that top leafy operculum covers the pitcher's opening when rain comes from atop. However, something like a purpurea has a hood like opening instead, doesnt mind having water, which allows rain to fall in. But there is no need to especially fill up a pitcher with water, as most sarracenia's stay generally dry inside and use bacteria within the pitcher itself to break through the insect's membranes. Because Sarracenia's arent really efficient in digesting their victims, most species usually rely on bacteria which do the digesting for it, with the plant absorbing the decomposed molecules from the bacteria within it. Keeping Sarracenias indoors doesnt really affect their ability to digest, apart from the fact that they wont be able to catch as many insects and may not be able to work as efficient as a healthy sar recieving a lot of direct sunlight outdoors. Sunlight really helps carnivorous plants have their energy to digest insects, and never should Sarracenias be kept indoors; it just wont thrive.
Hope that helped clarify some questions
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