are we literally discussing the literal meaning of literally right now?
Well no, we're discussing when it should be used. No one's been responding to the OP pretty consistently - I'd imagine because the OP provided a good summary of what happened.
the arabian sea is literally a body of water
Sure, that's grammatically correct, but it's improper usage. When would you ever have to specify that? No one would ever think that the Arabian Sea is
figuratively a body of water.
daedalus needs to stop taking things so literally
I'm actually telling everyone else that the literal meaning of literally is not its proper usage

so quite the opposite, dear spreads