b. Used to indicate that the following word or phrase must be taken in its literal sense.
Now often improperly used to indicate that some conventional metaphorical or hyperbolical phrase is to be taken in the strongest admissible sense.

OED is generally regarded as the authorative record of the english language so this website is far from moot. actually, that is also a misuse of the word moot earlier. moot means meaningless or irrelevant. if “literally” could correctly be used to qualify hyperbole then this website would be incorrect, not moot. however, the fact that most people don’t really care if their language is correct or not may render the website moot.

“b. Used as an intensive before a figurative expression.”

source: http://www.bartleby.com/61/91/L0199100.html

Also, according to Merriam Webster, who’s entry I’ll copy entirely:

Main Entry: lit·er·al·ly
Variant(s): /’li-t&-r&-lE, ‘li-tr&-lE, ‘li-t&r-lE/
Function: adverb
1 : in a literal sense or manner : ACTUALLY
2 : in effect : VIRTUALLY

usage: Since some people take sense 2 to be the opposite of sense 1, it has been frequently criticized as a misuse. Instead, the use is pure hyperbole intended to gain emphasis, but it often appears in contexts where no additional emphasis is necessary.

source: http://m-w.com/dictionary/literally