Grammaticians and Word folks get all bent up when someone says, "I literally died right there", or "I literally passed out from the shock". Because when you say "literally" you mean "it actually happened".
But here is the thing. I think it is perfectly within the American tradition to use hyperbole. I think that adding "literally" makes it's hyper-hyperbole (superbole?). I mean if you said, "I figuratively died right on the spot" it would kind of ruin the statement. Maybe I should start doing that. "I died right on the spot" is pure hyperbole, and I like it.
In any case, I am literally okay with it. I think it a bit clumsy, but I believe that most of the people who get upset at it's usage are the type of people who will tell you whether or not the pun was intended.
P.S. "hyperbole" is a FANTASTIC word.