If, indeed there was a creation?

I don't believe in God but to fairly answer your question, one must read the text within its context, both religious and cultural. It is my belief that the text you are referring to is meant to be understood metaphorically. Man is created in the image of God, therefore shares in God's image in the form of attributes. God is ultimately wise, loving, just, intelligent, creative, powerful...etc. Similarly, man also has those attributes "in the image of God" but to a much lesser extent.

I have never heard any Jewish or Christian scholar posit the idea that man was literally created in the physical image of God.

If a god created us in his own image, then this would mean, that these god would look like us. hard to believe. If a god who created a universe would create humans in his own image, we would hardly look like we look.I am an atheist, widely. Maybe one could call me pantheist, cos this would be in my eyes the only logical idea of a god. But then such a god would be everything, would be power and energy, all materia. Such god would have no skin or hair or eye colour, would have no gender. Such god would perhaps then as well feel no love, no hate, no happiness, no sorrow, but would be as well, love and hate, happiness and sorrow. Such god would not be a creator, but would be evolution. Such god would be first of all just being.