Image is an ambiguous term. Certainly limiting the term to image as a look or as "flesh" would seem to quite simplistic for a concept as large as God.
Image can be attitude, thought, origin of substance, like qualities within the matrix.
If we accept the premise that humans "fell" were tainted by sin, then some of this image has also been corrupted. So the perfect love, justice,etc. of God becomes something much less in humans, maybe even perverted.
I liken the image of God in us to the process of mining. Many tons of ore yield only small amounts of the pure mineral. Likewise it can take some devining to find the pure aspects of God within us.