Man... Henry either has giant balls or he is outright retarded (probably the later.) The south is under the royal rule, but seems to have a high degree of autonomy. That means that royal authority for them is almost a joke. Sure, they will weight the pros and cons of pissing off the royals, but if little Henry pushes to far, he might just be beheaded before the king (or is he an emperor?) can do something about it. And if the king depends heavily on the financial support of the south, then letting a vassal/servant die might be better than losing the support and risking a war.
And why trust the king when is partially retarded? And what someone went through is no excuse to their behaviour. You might understand why a person did something, but even if they have a reason, that doesn't excuse them from the consequences. If you were bullied, neglected, insulted and physically hurt by, let's say, your parents, and you kill them, while people might understand you, it's still a crime. His past doesn't absolve him from being retarded and almost killing his own son by sending him to the wolves.