But what does it mean to be created in the image of God? Does that mean God has nipples?
I always interpreted that in a more spiritual sense. It is impossible, of course, for any mortal being to appropriately conceive God in any way beyond the human experience or understanding of logic and reality. Plus, if God is omnipresent, then clearly the phrase wasn't meant to be interpreted literally.
To answer the OP: that would all depend on what you mean by "higher." If you're trying to establish a hierarchy based on intelligence or degrees of free will, then yes, humans are "higher" life forms than animals.