I generally saw it as separating a being who is supreme (God/He/Him) from other uses of the term (god/he/him). Since the God I once worshiped is now of the same status to me as the others, he is now god. I'm used to the masculine pronoun so I am comfortable with that, though I occasionally use "she" when I'm feeling snarky. I suppose that "it" would be most accurate but doesn't feel natural.
"Well, evolution is a theory. It is also a fact. And facts and theories are different things, not rungs in a hierarchy of increasing certainty. Facts are the world's data. Theories are structures of ideas that explain and interpret facts. Facts don't go away when scientists debate rival theories to explain them. Einstein's theory of gravitation replaced Newton's in this century, but apples didn't suspend themselves in midair, pending the outcome. And humans evolved from ape- like ancestors whether they did so by Darwin's proposed mechanism or by some other yet to be discovered."
-Stephen Jay Gould
-Stephen Jay Gould