Here’s the psalm in the Douay-Rheims-Challoner version:
"A psalm for Asaph.
"God hath stood in the congregation of gods:
and being in the midst of them, he judgeth gods.
Yes, right from the start of the Psalm – it isn’t all people he speaks of; rather its the congregations of gods. The rest is out of context in the OP.
And of course the kings of Israel took on some of God’s rulership attributes, because the true King of Israel was God; while true prophets were pretty much God’s mouth on earth. So in some cases, they could be considered (at least poetically) as small-g gods: representatives on earth of God’s power and love, and children of the Most High. This is a psalm made from that background.
The simple example from the bible being Moses himself who is called by God to be god to AAraon.
Hebrew text of Exodus 4:16-17: “He shall be your spokesman, giving out your message to the people, and you shall be to him a God.” Greek text: “You shall be to him in those things which concern God.”
So, it is both understood that Moses can be called god, and that he is not God in and of himself. Moses is the son of Pharaoh by adoption; Possibly Ra-Moses (Ramses). The sun God/fight God is Ra. So, by common understanding of the Egyptians – Moses would be son of god (Pharaoh).
(Albeit Hebrews were quite sure that small-g poetic-analogy gods were not anybody to be worshipped. The big-G God was the only God that got worshipped.)
I agree, but would say “adored” rather than worshipped. Worship and Honor are the same in legal circles – referring, perhaps, to the same tradition of godliness being the name of judges. In the USA we say “Your honor”, but in the U.K. (at least in times past), the title is “your worship.”. It does not mean we “adore” the judge, but that they hold an honor in representing the judgment which comes from God.
I find it more deplorable to hear people say “Oh~! the baby is ADORABLE.!”

Oh well, I’ll never be able to stop slang and exaggeration…
Now, maybe you’re thinking this is a bit farfetched. But God is the only really really Holy one, and yet we call angels holy. The word “saint” means “holy.” And we call not only the saints in heaven “saints”, but even regular Joe Schmo baptized Christians are “saints”.
Up to this point, I agreed, but NOW you went toooowooo far astray.
I am absolutely sure you missed one “really” or two “holies”, your choice…
Revelation 4:8: “day and night they cried unceasingly,
Holy, holy,
holy, [really, really, REALLY!], is the Lord God, the Almighty, who ever was, and is, and is still to come.”
Peace to you from your brother in Christ,
–Andrew.