It might be confused with "What's it like" and h-deletion facilitates that confusion, but the high vowel is the main contributor. If a native speaker were to h-delete, I doubt there would be any confusion, but with non-native speakers, we adjust our perceptual filters and contemplate possibilities that we wouldn't otherwise entertain (deletion of coda t before l). If you ran an experiment on speakers and gave them a choice he/it, I suspect most people would vote for "he". You could try "what see" vs. "what's he" but it doesn't sound like "what see" to me.