What is the importance of henselization in valuation theory, when the rank of valuation is bigger than one? Thanks
Same as its importance in commutative algebra. Just to be clear about the definition, for a valued field $K$ with valuation ring $R$, the henselization $K^{\rm{h}}$ is defined to be the valued extension Frac($R^{\rm{h}}$) for the henselization $R^{\rm{h}}$ of $R$ in the sense of commutative algebra (and $R^{\rm{h}}$ is equipped with a preferred valuation extending the one on $R$). This satisfies good properties as if it were a "completion" of $K$ even though it is (separable) algebraic over $K$, and it can be "approximated" using localetale extensions of $R$; that is really the point. It satisfies Hensel's Lemma and every finite extension $F$ of $K^{\rm{h}}$ admits a unique valuation (necessarily henselian...) extending the one on $K^{\rm{h}}$ (with associated valuation ring that is the integral closure of $R^{\rm{h}}$ in $F$). 

