The survival of Prince Henry obviously butterflies the entire familiar story of Henry VIII. He never dumps Catherine of Aragon and probably remains a strong Catholic. Does he descend into anything like the gross excess of OTL, or is his popular image entirely different?
An interesting thought: What if Henry, Prince of Wales has reformist leanings? Born in 1511, he'll receive a first class Erasmian humanist education in the 1520s, before the Reformation battle lines have been clearly drawn. If he drifts in a reformist direction, sheer rivalry with the old man could do the rest. Or England might remain Catholic without becoming the echo of counter-Reformation Spain that is popularly imagined. If England could go back and forth twice without a serious war of religion, it could stay Catholic with no serious war of religion - nor even an equivalent of the Marian persecution, if Protestantism has never gained a foothold to begin with.
England might end up as a Catholic country with an 'Anglican' Counter-Reformation.
Note that if Henry VIII lasts as long as in OTL, Henry IX is 36 years old when he comes to the throne - the father-son relationship could well be a driving force of English politics from about 1530 on. Henry VIII can remarry when Cath of A dies, so he might have a second son at just about the same time the Prince of Wales has a son.
Lots of interesting possibilities here!
Colonization in anything like the OTL sense is is unlikely. Prior to the mid 16th century population explosion England had no serious land shortage. A Henrician effort in the New World would focus on looking for the Northwest Passage. They might start trading with the Indians, especially if beaver pelts were already fashionable. But other than trading posts, there is little reason to establish settlements.
Truth to be told, in the 16th century North America is worthless wilderness - no cities of gold, no peasant population waiting to be conquered. Spain drew all the good cards. But Henry VIII is Spain's ally, and whatever his religious attitudes, Henry IX is half Spanish.
But the English will want a piece of the good action in the New World, and for the Spanish it could be wise to give them some. Even in OTL, and amazingly, there are suggestions that John Hawkins genuinely hoped at one point that the Spanish would hire him to protect their New World interests against French interlopers - the Spanish hired Genoese galley squadrons, so why not English sailing squadrons?
Don Francisco Draque, hero of Spain, scourge of French pirates ...