Than the angels - So this is rendered by the Aramaic Paraphrase: by the Septuagint; by the Latin Vulgate; by the Syriac and Arabic; and by the author of the Epistle to the Hebrews Heb 2:7, who has literally quoted the fourth, fifth, and sixth verses from the Septuagint. The Hebrew, however, is - מאלהים mi'ĕlôhı̂ym - than God. So Gesenius renders it, "Thou hast caused him to want but little of God; that is, thou hast made him but little lower than God." So DeWette, "nur wenig unter Gott." So Tholuck renders it, "nur um wenig unter Gott." This is the more natural construction, and this would convey an idea conformable to the course of thought in the psalm, though it has been usually supposed that the word used here - אלהים 'Elohiym - may be applied to angels, or even men, as in Psalm 82:1; Psalm 97:7; Psalm 138:1; Exodus 21:6; Exodus 22:8-9. Gesenius (Thesau. Ling. Heb., p. 95) maintains that the word never has this signification. The authority, however, of the Aramaic, the Septuagint, the Syriac, and the author of the Epistle to the Hebrews, would seem sufficient to show that that meaning may be attached to the word here with propriety, and that somehow that idea was naturally suggested in the passage itself. Still, if it were not for these versions, the most natural interpretation would be that which takes the word in its usual sense, as referring to God, and as meaning that, in respect to his dominion over the earth, man had been placed in a condition comparatively but little inferior to God himself; he had made him almost equal to himself.
Gill offers these remarks:
but since the word is rendered "angels" by the Chaldee paraphrase, the Septuagint interpreters, the Jewish commentators, Aben Ezra, Jarchi, Kimchi, and Ben Melech, and in the Arabic, Syriac, and Ethiopic versions, and above all by the author of the epistle to the Hebrews, it is best to interpret it of them
The NET translates the Hebrew as "heavenly beings" while offering this footnote:
Heb "and you make him lack a little from [the] gods [or "God"]." The Piel form of חָסַר (khasar, "to decrease, to be devoid") is used only here and in Eccl 4:8, where it means "to deprive, to cause to be lacking." The prefixed verbal form with vav (ו) consecutive either carries on the characteristic nuance of the imperfect in v. 5b or indicates a consequence ("so that you make him…") of the preceding statement (see GKC 328 §111.m). Some prefer to make this an independent clause and translate it as a new sentence, “You made him….” In this case the statement might refer specifically to the creation of the first human couple, Adam and Eve (cf. Gen 1:26-27). The psalmist does appear to allude to Gen 1:26-27, where mankind is created in the image of God and his angelic assembly (note “let us make man in our image” in Gen 1:26). However, the psalmist's statement need not be limited in its focus to that historical event, for all mankind shares the image imparted to the first human couple. Consequently the psalmist can speak in general terms of the exalted nature of mankind. The referent of אֱלֹהִים (’elohim, "God" or "the heavenly beings") is unclear. Some understand this as a reference to God alone, but the allusion to Gen 1:26-27 suggests a broader referent, including God and the other heavenly beings (known in other texts as "angels"). The term אֱלֹהִים is also used in this way in Gen 3:5, where the serpent says to the woman, “you will be like the heavenly beings who know good and evil.” (Note Gen 3:22, where God says, “the man has become like one of us.”) Also אֱלֹהִים may refer to the members of the heavenly assembly in Ps 82:1, 6. The LXX (the ancient Greek translation of the OT) reads “angels” in Ps 8:5 (this is the source of the quotation of Ps 8:5 in Heb 2:7).