The capitalization issue could get more controversial if many readers conclude that not keeping  He upper case drops the antecedent to the level of a mortal's proper name such as Henry. Avoiding using God and a corresponding pronoun might be easy enough in most news reporting, but quotations containing both necessitate a style choice for hard copy and web text reporting. 
How will CNN and others in news reporting handle the capitalization issue? Web searchers will keep a vigil. 
Henry had no problem with the decapitatelization of wives and wayward subjects.