What is "Heichal Kadsho"?
Radak: It is Shamayim.
Malbim: It is the Beis ha'Mikdash below. This begins the answer (Hashem is Mashgi'ach)! We see His Hashgachah in His world, and His reward and punishment. Sometimes it is revealed, and sometimes hidden. The wise picture Hashem in His Mikdash, like a king who dwells among his subjects, judges them and oversees their deeds. Also refer to 11:4:2:3.
Why does it say that His throne is in Shamayim?
Rashi: Even so, "Einav Yechezu" (He sees you on the land and evaluates your deeds.)
Radak: The matter is repeated in different words.
Malbim: The masses think that His throne is in Shamayim, that He removes His Hashgachah from the land, and put His throne of conduct in Shamayim. I.e. He handed over conduct to Shamayim and the Ma'arachah (arrangement of celestial bodies), and conducts His world via them, and not via Hashgachah. Really, Hashem is in His Heichal, and His eyes see and oversee Hashgachah Pratis.
What is the meaning of [Af'apav] "Yivchanu Bnei Adam"?
Rashi: He sees and evaluates your deeds.
Radak: This is like "Ram Hashem v'Shafal Yir'eh" (138:6). He bestows to the Tzadik and the Rasha, each according to his deeds.
Malbim: It seems that His throne is in Shamayim and He closed His eyes and does not supervise, because His eyelids investigate people. Eyelids close the eyes; it denotes removing Hashgachah, for then it seems that the eyes are closed and He does not see what is done in the land. Via this (hiding His Hashgachah), He tests people and clarifies whether Tzadikim serve Lishmo, and He emboldens the heart of Resha'im to do evil.
