I haven't been to Brazil, but I have been to Ecuador, Colombia, Bolivia and Paraguay. South America is a great place to visit, lots of cool stuff to do and see, and the culture is great. I speak pretty good spanish, and that helps as well... but I believe they speak porteguese in Brazil correct?
I've never stayed (save once) in a hotel in any of those places either... most of the time you can find people who run small hostels out of there home, pretty much like a B&B, and they usually charge next to nothing, and sometimes even provide good company if you're plans got screwed for the day. haha
I would definitely recommend at least a small trip to the Amazon jungle, if possible. I've hiked in it, and the scenery alone is worth the trip. If you do do that, and I'm assuming it would be your first time... just make sure you be careful where you wander off to, and stick with someone with experience.