The nature of man is half animal-half Godly. He has the chance to be bad, or be very much better. It all depends on his choice. Adam and Eve lived in eden along with all other angels. Why weren't there no angels at anytime thrown out of paradise? because they don't have a choice! Adam and Eve decided to eat from the forbidden tree, and they later decided to ask for God's forgiveness. So I think humans are inherently (only inherently!) better than angels, but they have the chance to become worse than animals! Animals don't have choice in killing each other and ..., they only have their instinct to act upon, but humans are able to think and realise the difference between good and evil.
Here are some verses from the Quran. It's the word of God about man's creation. I thought they might be interesting for some:
(al-hijr, 26-29):
-Verily We created man of potter's clay of black mud altered.
-And the jinn did We create aforetime of essential fire.
-And (remember) when thy Lord said unto the angels: Lo! I am creating a mortal out of potter's clay of black mud altered.
-So, when I have made him and have breathed into him of My spirit, do ye fall down, prostrating yourselves unto him.
(al-baqara, 30):
-And when thy Lord said unto the angels: Lo! I am about to place a viceroy in the earth, they said: wilt Thou place therein one who will do harm therein and will shed blood, while we, we hymn Thy praise and sanctify Thee? He said: Surely I know that which ye know not.
So man is good due to to God's spirit blown into him, and having the angels falling in front of him! ( the story goes on talking about iblis or the devil. It says that only the devil refused to do that, he was a jinn- another kind of creation, that are invisible to humans- but due to his years of worship he was given a place among the angels; He said i'm better than man because he is made up of mud, and i'm made of fire, and so he became man's enemy and swore to corrupt him and deceive him out of the right way)