Making man in God's image: a choice of supporting verses

In Avot 3:18 Rabbi Akiva makes (among others) the following statement: 

Beloved is man, for he was created in the image [of God]; with even greater love it has was made known to him that he was created in the image, as it is says, "For in the image of God, He made man" (Genesis 9:6). 

The Abarbanel asks why Rabbi Akiva chose the verse since it is actually only the second of two verses in the narrative of the Creation that allude to man being made in God’s image. The earlier verse reads, in part:“And God said: ‘And let us make man in our image, after our likeness; …” (Genesis 1:26).

One short answer might be that the earlier verse poses a difficulty that itself demands explanation, in that God is speaking there in the plural.  The use of words like “us” and “our” automatically raises the question why – and who might God have in mind, at a point in the Creation narrative at which no candidates for “us” and “our” present themselves?  A second difficulty relates to the creation of man both in “our image” and “our likeness”: since the Torah does not lightly indulge in tautology, we are obliged to explain the difference between the two terms and justify the use of each of them.  This rather complicates the simple notion that man, in his own small way, has the power to emulate his Maker, to distinguish right from wrong, to recognise the truth when he sees it, to give and to love others.

This rather complicates the simple notion that man, in his own small way, has the power to emulate his Maker, to distinguish right from wrong, to recognise the truth when he sees it, to give and to love others. A further problem is that, if God says that we are made in His image but refers to His activities in plural terms, that raises the implication that we should also view ourselves in the plural. Among mere mortals however, use of the “Royal we”smacks of self-importance bordering on arrogance for anyone who is not a King or Queen.

Any thoughts on this?