I believe you are correct, God is Holy and He expects us to be holy and live a Holy life according to his Word. I do not believe one can exclude what ever they want from the Bible to justify a lifestyle or say it is not meant for today. Every word written was given to the writers by the Holy Spirit. It was not just written by a human as their own thoughts. Jesus is the Living word, I believe that the Bible and all that is written in it is meant for today and for all time and is alive. I do not believe that one can truly understand it without the Holy Spirit revealing to them the true meaning of what is says. Yes God does demands us to be Holy and I find it to be a daily struggle! That is why your personal relationship with Jesus is so important and should be the first and foremost thing that you have in your life. For without Jesus you have nothing and apart from Him you do not have anything that will last. As a Christian we are to model are life after our Lord and Savior Jesus, and Jesus is Holy and we are to be like Him! Being a Christian is the hardest thing in life to be. So anyway I think that the bible is literal unless it specifically states otherwise.

God Bless,

Blaze