Would a translated novel still retain the original charm, identity and style? Does translation allow some creativity?

It really depends on the translator and his intention regarding translation. Some translators, for example, focus more on producing a solid and accurate translation that they forget to convey the magic implied in creative writing, hence ending up reducing the overall literary effect intended by the original work. Others, and this answers the second part of your question, realize the importance of the sense of creativity associated with literature and thus participate in the overall production of creativity with their translation techniques. 

Yes I believe. I even go further to say some translations bring about more charm than the originals. The second part of the question, translation allows creativity, especially in works like novels. And we should know that a translated piece is considered a new piece created by the translator.