Creativity of God the Creator

Not long ago I did a post on the role of creativity of Satan.

But recently I have been thinking of the Creativity of God and how humans use the creativeness He has given us. As stated, we are made in the image of God, who is the Creator. So, naturally, humans have creative powers and almost a need to create. But not everything we create is good, as in the case with God.

A couple of questions (of which I truly do not know the answer).
1. Does God still create? When we think of God, and put a definition on Him, we usually include Creator. But do we keep God's creativeness in the past? If we say God still creates, do we limit him to just babies? What is God's role today as Creator?

2. Concerning fantasy, where is the line when it comes to made up worlds? Of course, we have the appraised Chronicles of Narnia and the Lord of the Rings. And just because someone can think it up does not make it holy. So, these examples show how fantasy can be "used" to speak of God. I know anything can be used for or against God's glory. But that is not quite my question. What about "creatures" made up that is completely imaginary, such as elfs, gnomes, trolls, fairies etc? I am guess someone will point to Monsters Inc. Fine, but it does not answer my particular question. How can man's creations be considered either good or evil? I know this is not a clear question. And the question may seem to have already been answered, but I am not sure, it has been explored well (or at least I have not thought about it enough to satisfy my curiosity).