Interesting points. However, it is presupposition to claim that we (or the world) are entirely physical. The matter of transcendence is also problematic, and it is, primarily, a religious concept. My point was to agree with you in that emotion is not to be centered or invested in the external constructs of society. However, externality and transcendence, while related, are not the same thing.
Externality, for the purposes of this discussion, refers to the institutions and structures of society. This issue can be treated as separate from the concern with body or physicality. Yes, we are biological entities, but at the same time are we not influenced in our belief systems and behaviors by family, educational, religious and political structures? Many conceptions of transcendence allow religious institutions in particular to draw authority from that which is not merely beyond the physical world, but beyond the human or social world.
Therefore, problems of definition notwithstanding, what is at stake is a concern over extremes. To invest oneself fully in 'god' (metaphysical) can be a basis for a fundamentalist religious belief --to invest oneself (or humanity) in body (physical) alone is, similarly, a form of extremism.
A useful simplification: science, especially evolutionary biology, concerns itself with 'form' and the various forms of life and existence --even earlier forms, or the origins of life. On another level, philosophers ask questions about 'matter', or substance (think 'substratum'), that which takes form. But, what is origin of matter?
Returning to Plato (the oldest queen of then all): "wisest is he who knows that he does not know!"
One final thought is that it is best to think in terms of what (or who!) outside of me is putting the limitations in place, as opposed to this idea that "I am limited."