The key thing to understand here is that for an infinitesimal dipole above a perfect conductor, the electromagnetic fields simplify greatly. In particular:
The magnetic field is identically zero in the region above the conductor. This is because magnetic fields cannot penetrate a perfect conductor.
The electric field takes on a very simple form - it is radial and proportional to 1/r3.
So in this special case, the average energy density and radiated power can be calculated from just the electric field, without considering the magnetic field (since it is zero).
The expression from Balanis is calculating the average energy density from just the electric field term (|E|2) since the magnetic term (H∗) drops out.
In general, for arbitrary sources and fields, you do need to consider both E and H - but for this specific case of a dipole above a conductor, the fields are highly simplified and the magnetic portion is not needed.
infinitesimal
meanssmaller than microscopic
... is that what you meant to say? \$\endgroup\$