How are we made in God's likeness?
Ps 50 provides nothing of use in this enquiry - advice and instruction about 'living wisely' provides little information to interrogate the grand scheme!
Gen 1:26 is foundational to God's plan. What we see is the initial steps to make man in God's image, in 'our' image is the words we're provided. We can see from many bible teachings that God created a hierarchy of order. There are various levels in the angelic realm, humans are created lower than them, but will supersede them once in the Kingdom. With hierarchy we must have various levels of power and authority. God allows His creation to use this power - hopefully for good, but He allows evil to exist also. We might say, evil is allowed to thrive, for a time at least! Eph 6:12, Dan 10:13, 1 Cor 8:5 etc.
Anyway, God honours those in His government, He requires us to honour the government in our lives - family, civic and spiritual. He has indicated this honouring with the term "us" and "our" when referring to the creation process. He doesn't operate in isolation, He is love. The beauty of the angels, the archangels and the heavenly beings with their glory and wonder is a part of what God is making with us. We will have more glory than the angels. God made Jesus to have a greater glory - and he is a front-runner for us!
You made him a little lower than the angels; You crowned him with glory and honour Heb 2:7
Importantly, creation of humanity is a process - it will not be finished until fire burns up the earth!
While the general concept is, 'we are made in the image of God', this is only true in and through Jesus who IS the image of God. Rom 8:29
For those whom He foreknew, He also predestined to become conformed to the image of His Son, so that He would be the firstborn among many brethren;
This is the same theme of 'all things are made in Christ'
...there is but one Lord, Jesus Christ, through whom all things came and through whom we live. 1 Cor 8:6
God made everything to have its destiny and fullest purpose and realisation in Christ - being able to rise above sin and death only in him. IOW, without Christ's salvation, we might as well not even exist - our life would be pointless. We cannot be found in God's image on our own at any time, certainly not while we are still sinners.
Jesus was made in God's image from birth - being holy and without inherited sin. We, since Adam, have inherited sin and corruption deep within our being - this is very UNlike God.
Further confirmed by;
And just as we have borne the likeness of the earthly man, so also shall we bear the likeness of the heavenly man (Jesus). 1 Cor 15:49
How are we in God's image?
We must ask why are not the angels also in God's image? They are holy and without sin - those who are still called 'God's angels'.
God is able to do whatever He wants - He chooses to do good. We are made in this fashion of having a choice. Jesus was also similarly made because he had his own will also. He had a lifetime of choices to make while in the deepest of evil and associated temptation. He passed the test until the bitter yet triumphant end - and we pass it to - but only in his victory.
It must be restated that God is able to do evil - He can be mean, cruel, unloving..., but He always chooses not to. This kind of character is what He is producing/creating in humanity. Once this is completed, we will be in the image of God - in Christ.
It would seem that the angels could turn at any time towards evil. We, on the other hand, will have made our choice forever once we are changed and filled with the fullness of God. Which brings us to;
We know that no one who has been born of God sins; but He who was born of God keeps him, and the evil one does not touch him. 1 John 5:18
The biblical matter of being 'born again' or 'born from above' is explained here.
Once we are born of God, we will not want to sin anymore - we will persistently choose not to - just as Jesus did while fleshly with his Father's spirit enabling his decisions and choices to align with God's will and not his own.
Once we have received our change to spirit life, as Jesus did also, we will not be God, but we will have the character and heart of God - which the angels do not have.
Remember the former things of old: for I am God, and there is none else; I am God, and there is none like me Isaiah 46:9
God has never said He is making more Gods. He is making, though humanity, a family of children who are like Him and want the same things He does - peace, love, grand desires and accomplishments and all without a seeking of selfish purposes.