Of course people read the Bible literally. I'm sure they are holding an actual, physical book in their hands.
However, whether they interpret it literally, is another matter.
I don't know of anyone or any organization which demands a LITERAL interpretation of every word of Scripture. Most people who are literate are savvy enough to understand that parables are not meant to be taken literally, nor songs (Psalms), poetry, clear allegory or metaphor, visions seen by the prophets, etc.
The charge that Christians take every word of Scripture literally is only a smear tactic to be always used to disparage and discredit them and their message. It's an avoidance technique used by those who do not wish to be accountable to God on HIS terms but rather want to have God on THEIR terms.
It doesn't work.
They THINK it does; as they walk past the graveyard; whistling...