WI: Emperor Henry I of Britannia

Historically, one interesting tidbit about the "Act in Restraint of Appeals" was that it proclaimed that "This realm of England is an Empire" but King Henry VIII refrained from proclaiming himself Emperor, but what if he had proclaimed himself "Emperor of Britannia" (or something along those lines)? How would the proclaimation of an actual "British Empire" affect the English Reformation?
 
Presumably it would have solidified Imperial Habsburg opposition from religious and familial grounds to also political.
Catherine of Aragon was also very popular in England and had served as Henry's lieutenant/governor/steward of England during his absence with little complaint against her.
There might have been civil war and an actual invasion to replace him with Mary (well her Regency) and stop the English Reformation in its tracks.
 
Assuming that Emperor Henry I doesn't get overthrown, could we see other Protestant monarchies elevate their realms to "Empire of X" on the British precedent (for example, we might see the Vasas proclaim an "Empire of Sweden" with themselves as the Emperors of said "Empire of Sweden")?
 
Well he permanently ends any chance of alliance with the Habsburgs and is mocked across Europe (more so than OTL). Henry's not going to want to risk permanently closing the door on an Imperial alliance; that means he's stuck allied with France and considering he always wanted to gain French territories, probably wouldn't work well.
 
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