1)
Does He descend to see also in Shamayim?
1.
Rashi: No. He rises to dwell in Shamayim, and descends to see in Eretz.
2.
Radak (5), Malbim: Yes.
2)
Why does it say "ba'Shamayim uva'Aretz"?
1.
Radak (5): Both Shamayim and Eretz are below Him; He sees those in them, and their deeds.
2.
Malbim: Hashem is so great that for Him, there is no difference between Shamayim and Eretz. Just like He rises to dwell above Eretz, also above Shamayim. Just like He must descend to see in Eretz, also to see in Shamayim. You cannot say that He is closer to Shamayim than to Eretz.