(Which I don't know about, one of the properties God is usually described to have is a willingness to punish defectors.)
If God values punishing defectors enough, then that changes the effective payoffs in the game.
If God's predictive abilities matter, then I take it you're envisaging God in the role of proposer rather than responder, and the sense in which he loses is that e.g. the responder can commit to declining any offer less than (say) $9 from an initial stake of $10, so that God only gets $1. Well. The responder can do that against anyone, perfect predictor or not, and God actually does better than anyone else because he can at least offer the $9 he needs to. But I suppose the point is that the responder wouldn't make that commitment if not playing against God, because without God's magical foreknowledge the predictor won't be offering $9 anyway.
So, anyway, if I understand your parenthesis right, you're saying that it won't play out that way because for the responder to decline a reasonable offer is a variety of defection, and God will want to punish it by refusing to make the offer the responder wants. Perhaps so, but what that means is that God's true payoff isn't (say) $1 but $1 plus the fact of the responder's successful defection, and if he disvalues the second component of that enough it could be worse than $0. Which is true, but it means that they're no longer playing the Ultimatum Game, they're playing another game with different payoffs, and of course that can lead to different choices.
I don't know enough math and I don't know if this is important, but in the hopes that it helps someone figure something out that they otherwise might not, I'm posting it.
In Soares & Fallenstein (2015), the authors describe the following problem:
More precisely: two agents A and B must choose integers m and n with 0 ≤ m, n ≤ 10, and if m + n ≤ 10, then A receives a payoff of m dollars and B receives a payoff of n dollars, and if m + n > 10, then each agent receives a payoff of zero dollars. B has perfect predictive accuracy and A knows that B has perfect predictive accuracy.
Consider a variant of the aforementioned decision problem in which the same two agents A and B must choose integers m and n with 0 ≤ m, n ≤ 3; if m + n ≤ 3, then {A, B} receives a payoff of {m, n} dollars; if m + n > 3, then {A, B} receives a payoff of zero dollars. This variant is similar to a variant of the Prisoner's Dilemma with a slightly modified payoff matrix:
Likewise, A reasons as follows:
And B:
I figure it's good to have multiple takes on a problem if possible, and that this particular take might be especially valuable, what with all of the attention that seems to get put on the Prisoner's Dilemma and its variants.