Would it actually classify as life if it were a computer program? Or am I misunderstanding this? Lol. It seems like it would be possible, but what are the implications of this? What would the uses be?
Yes you are misunderstanding

The idea is that this is
outside computers, ie. it's in real life.
When it says His image it meant that when He created Adam He created him to not know evil, it doesn't mean He gave us His whole knowledge.
I personally don't think that we will be able to make humans, but who knows what the future holds.
Perhaps it meant that yes, but that's you interpretation of that specific line. We may never know what it truly means.
Interesting. But it is still artificial because it was originated with artificial stuff created in labs. I have no doubt that much more advancements would be made in this area but seriously we are still a billion years away from creating an alternative non-artificial life.
That's as maybe, but even artificial life is life wouldn't you say? I doubt that we are still a billion years away from this because technology has the tendency to violate all estimations. There could be a breakthrough tomorrow or it may never come at all.
But speaking doing what only god can do:
I just though of an interesting book I read once. It's along the lines of artificial life and intelligence so I guess I can post it here. The story goes that an advanced race ,not unlike us humans, built a super computer that had the computational power of the known galaxy. In other words: it could simulate the entire (known) galaxy. With this computer their scientists started to simulate the start of the universe to see how it all began and how things evolved. Of course this wasn't done in real time, as the scientists wanted quick results, so they sped up the simulation. After a few years of running anomalies started to occur inside the machine, unexplainable errors started to appear on the screens managing the simulation and strange occurrences were happening more and more often. When things started to get really hectic, the scientist in charge brought the simulation-speed back to real-time so that they could discover what was wrong.
It was then discovered by the scientists that the universe they'd launched many years back was now older then the universe they themselves were living in. They found that on the exact same planet they inhabited themselves 'their' civilization had 'reappeared'. Even more astonishing was the fact that after weeks of studies and investigations it appeared that the simulated civilization was much more technologically advanced then they themselves where. The simulation had surpassed it's creator because their creator was outside their time remaining static and unchanging while they advanced. Immediately investigations were launched by the creators to harness their simulation's technological prowess.
During one of these investigations the creators found their biggest surprise yet: the anomalies in their simulator -which should have been perfect- were caused by a machine found in the simulated galaxy. They discovered a machine not unlike their own simulator which was busy simulating what appeared to be another universe, one that was even more advanced than which they had simulated themselves. The list went on and on, and it was decided that the infinite recursiveness of the machine was what had caused it to fail.
An interesting story don't you think? Many say that God can't be surpassed and that he knows everything, that he is omni present and omni powerful, it's completely possible.
The creators, being at the start of the list of recursive simulators, had literally all the knowledge of the universe at their finger tips. They could inspect a galaxy simulated millions of simulators down the chain and thus see millions or even billions of years into the future. The creators where omni powerful: they could change the very laws of nature by adjusting the rules of their, or other, simulators. They could even reverse time and play the universe backwards (and with it all other universes). However the fact remains that even the first of simulated galaxies did what the creators did ,in their own time, and then surpassed them eventually because their time passed more quickly.
So in this story the simulated/created people surpassed their creators. Personally I think that if we have a creator we can surpass Him/Her/It because while our creator remains static we age and advance. This is also why I think we can create life, because even if there's a creator we can always improve on His/Her/It's work.