Literally has been used in that way for literally hundreds of years. From Charles Dickens ("He had literally feasted his eyes on the culprit.") and Charlotte Bronte ("Literally I was the apple of his eye"), to Mark Twain (in Adventures of Tom Sawyer) and F. Scott Fitzgerald (in The Great Gatsby) -- among others.

This "Literally shouldn't be used figuratively" is a rather modern construct that was artificially created.