Maybe it's on its way to becoming a word that changes meaning over time like "gay" or "decimate". Since "literally" is used so much in place of "figuratively" (or "figuratively speaking") I think that's what many people really think it means. But:
"Literally" means ACTUALLY or without exaggeration!
My head literally explodes every time I hear it used incorrectly! Heh.
It sure saves on hair color and makeup expenses....