It's not that the word "literally" is worse now. It's that it used to represent an idea (the idea of a thing being non-figurative) which it's slowly coming to not mean anymore.
Words map to meanings. Those mappings can shift and change over time. But if that happening leaves a particular meaning orphaned then I'd think of that as unfortunate, no?
Maybe instead of changes being "good" or "bad" it's more like "this shift in language increases (or decreases) the total expressiveness of the language". Would you be less up in arms at that way of putting it?