Is "literally" not so literal anymore?

Inspired by the recent discussion about literally I decided to shed light on the issue since I felt a little confused myself by all that fuss.

So far, I've been teaching my Students that they should use literally very....literally;)
In other words, the meaning of literally is exactly, truly, actually.

On the contrary to figuratively, which is used in non-literal context, meaning metaphorically.

E.g.

The name of the cheese is Dolcelatte, literally meaning 'sweet milk'.

I said I felt like quitting, but I didn't mean it literally.

They have a taste - figuratively speaking - for excitement.

More or less I've been acting like this Captain L below:

However, it'll probably be good news for my Ss when I tell them that the Oxford English Dictionary has incorporated this 'irregular' usage of literally.

"This newer, disputed usage (describing something non-literal, as a form of exaggeration) has become more frequent over time, and is now sometimes used quite deliberately in non-literal contexts."

Like in here:

So, it seems that literally will no longer have only literal but also figurative meaning. And, like it or not, now it's legitimate....:/

source: google images, youtube.