That’s the core of the issue, Henry isn’t a very good blocker. If they’re going to spend big on a TE, it should be Schultz who is a solid blocker and still a good receiver. Henry also has injury issues like you noted.
If Schultz goes elsewhere then they can circle back around to Henry and see what the market has dictated his value as, but there are other decent TEs on the market as well. Henry is definitely a very good receiving TE and a good locker room presence, so I’m sure he will get a decent deal, but I imagine AVP will be using his TEs two ways often.
They also have Gesicki available to sign for probably far less, who can’t block for his life, but was a very good receiver last year. Granted, they rarely used him as an actual TE, but worth considering bringing both him and Brown back and using their skill sets effectively, plus another mid grade TE1 addition, vs splashing cash on Henry and still being deficient in the blocking dept.