Nowhere do the Vedic scriptures say that one has to annihilate desire in order to comprehend the Upaniṣadic statement sarvaṁ khalv idaṁ brahma. But there are many statements recommending that the character of desire should be transformed. It is because of the force of desire that all activities in the world are carried out, and in the Bhagavad-gītā (10.4-11) Lord Kṛṣṇa discusses the multifarious ways in which desire influences these activities:
Intelligence, knowledge, freedom from doubt and delusion, forgiveness, truthfulness, control of the senses, control of the mind, happiness and distress, birth, death, fear, fearlessness, nonviolence, equanimity, satisfaction, austerity, charity, fame, and infamy—all these various qualities of living beings are created by Me alone.
The seven great sages and before them the four other great sages and the Manus (progenitors of mankind) come from Me, born from My mind, and all the living beings populating the various planets descend from them.
One who is factually convinced of this opulence and mystic power of Mine engages in unalloyed devotional service; of this there is no doubt.
I am the source of all spiritual and material worlds. Everything emanates from Me. The wise who perfectly know this engage in My devotional service and worship Me with all their hearts. The thoughts of My pure devotees dwell in Me, their lives are fully devoted to My service, and they derive great satisfaction and bliss from always enlightening one another and conversing about Me. To those who are constantly devoted to serving Me with love, I give the understanding by which they can come to Me. To show them special mercy, I, dwelling in their hearts, destroy with the shining lamp of knowledge the darkness born of ignorance.
Those who understand that the multifarious human desires are a reflection of the Supreme Brahman's desires are careful not to discard them but to use them in the Lord's service. Long ago, the seven great sages and the Manus all used their God-given desires in the Lord's service, and anyone today who emulates the example of these illustrious ancestors will never see desire as mundane or as an impediment to spiritual progress. If Ramana Mahārṣi advises us to negate desire, then we must conclude that he misunderstands the Vedic statement sarvaṁ khalv idaṁ brahma. Those who have realized that all desires and feelings are Brahman by nature, and who thus engage them in the Supreme Lord's service, should be considered perfected souls. They are totally free from nescience. The desires of these self-realized, elevated, blissful devotees become purified to such an extent that not an iota of ignorance can influence their consciousness, for the Lord Himself destroys the nescience in their hearts.