"awareness" raised a good point:- Is it correct to say that we have lost the image of God?
If I understand "awareness" correctly, he might cite Genesis 9:6 which suggests that even after Adam and Eve's fall, Scripture deems everyone (whether believer or unbeliever) as still "made in God's image".
My understanding of Romans 8:29 and 2 Corinthians 3:18 are that the Christian growth that takes place after we begin to believe in the Lord is also described as "transformation into the image of Jesus".
Is there an inconsistency? The answer is not straightforward. I suggest having a look at this article written by a Christian writer John Piper which tries to explain how "image of God" is understood.
http://www.desiringgod.org/articles/the-image-of-god
On a separate note, if one wanted to describe the "highest peak of the divine revelation" of the Bible in one sentence, one could also simply cite John 3:16.
"For God so loved the world that he gave his one and only Son, that whoever believes in him shall not perish but have eternal life."
This verse adds a dimension in that it also introduces the idea of God's love.
LSM's version:-"God becoming a man that man may become God in life and in nature, but not in the Godhead" introduces two ideas:- (i)Incarnation/Living as a human and (ii)Transformation.
My "improved-version of LSM's version":-"God redeeming man that he may be restored to the image of God" also has two limbs:- (i) Redemption and (ii) Transformation. My intention was to (i) move from the focus from incarnation to redemption which I felt was neglected and (ii) to improve LSM's unsatisfactory expounding of "transformation"
But I think John 3:16, by also introducing the idea of love, offers a more complete picture. It has (i) love, (ii) redemption (which connotes God's righteousness) and (iii) eternal consequences. When one truly grasps God's love and righteousness and the consequences of redemption, he would ultimately be transformed.