I think "whether or not [you] know it" is key. The definitions I'm advancing have to do with the subjective mental work you do (or don't do). I agree that "typing" is literal because we do not loop in the concept of physical type making an impression when we interpret or describe the action of fingers on a keyboard. The term has flown the nest, so to speak.

What about my last paragraph? Do you deny that there's a two-step process going on, or do you actually see the phrase "Chinese cradle" and interpret it to mean "birthplace of civilization" rather than first assuming it means a baby-related object produced in China?

Of course it's weak. This is all pedantry. But then again, "literal" now means both "literal" and "not literal" so maybe all linguistic distinctions are fragile. Less useful once they're destroyed, though—it would be nice if we had a word that meant "literal" without also meaning "not literal."