Favoured etymological sources: Oxford English Dictionary and Webster's New World: Third Edition. Sources for usage (pronunciation, spelling or pluralisation): The previous, as well as American Heritage Dictionary: Fourth Edition, Funk & Wagnalls Standard Dictionary of the English Language: 1960, and Merriam-Webster's Collegiate Dictionary, 11th Edition. Primary source for phonology: Kenstowicz's Phonology in Generative Grammar: 1994.
Does literally have to scope over the entire sentence that it’s part of, or are we cool as long as it’s highlighting some part of the sentence as the literal truth?
He provides a couple of examples for us to judge. It seems he believes highlighting is OK.
My view: I agree. The target sense can be, and often is, localized to one part of the claim.