I would return to that perception game though, as a partial defense of Chamberlain, as I have done before.
The Christie-X report was WILDLY inaccurate in Germany's favour. Its estimates for the Luftwaffe in '38 were actually higher than what Germany had in '40.
The stupid doctrine in the UK, even though to its credit it wasn't as set in stone as in the USA, not only was that you CAN bomb a country into submission in '38, but remained so untll the end of the war. Even after ample evidence to the contrary.
At the time, the only evidence to the contrary was in the Spanish Civil War, and the only actual report dealing explicitly with the fact that terror bombing actually only strengthens the will to resist of those bombed, was... from the Germans. The UK was also, stupidly enough, completely ignoring the Spanish Civil War air aspect steadfastly. As I may have mentioned before, the ONLY article about it in army journals was a translation from French.The French officers did study it a LOT (although their politicians ignored it anyway) and some US officers did, and surprisingly enough, some actually came to the conclusion that MAYBE strategic bombing isn't that worth it after all (and were told to STHU.) But the Bristish? Nah, they didn't give a rodent's rear about learning anything from that war.
So basically, as you say, Henry should know that it wasn't possible to bomb the UK into submission, but Chamberlain sure as heck didn't. In fact, for all the generals were telling him, as soon as you bomb someone's factories, the owners would be up in arms to depose you, for getting their property ruined. That was how strategic bombing would win the war, after all.
And basically Chamberlain was a politician anyway. Whether or not England would capitulate, for all he knew, the reaction to a bombing would most certainly end HIS career. See above the expected reaction to a strategic bombing.
It also didn't help that, as I keep repeating, the Runciman report was that yes, the Sudeten Germans had actual reasons to be unhappy about how the Czechs rule them. In fact, the best he can say about how the Czechs treat that minority is literally just that it's not outright terrorism. No, really, read the report.
That would make it really hard to justify as position at home where basically, hey, we're getting bombed so the Czechs can get to continue oppressing the Sudeten Germans.
Basically what we have there IMHO isn't a case of derp, Chamberlain was stoopid. It's more like just a case that, well, Chamberlain was a politician, and at that not a dictator. In a democracy your primary goal is to win the votes. Sadly enough. That imposes a certain degree of necessary short-sightedness. You have to do what the voters want NOW, even if in the long run the horribly unpopular option would have been more beneficial. Because if it's horribly unpopular, you'll just get replaced by someone who promises to do the populist thing.