Rio and Sao Paulo are not really Southern Brazil. The states of Santa Catarina and Rio Grande do Sul are. Neither of those states get much tourist traffic. That is where the pretty girls come from. They do not come from places like Rio and Sao Paulo.
Rio Grande do Sul and Santa Catarina are a world away from touristy Brazil. The area is very conservative, very white (German, Lithuanian, Polish, Ukraine, Italian), and relatively safe. A friend of mine is from the area and also raves about the surfing.
I think Blumenau has the largest Oktoberfest outside of Germany (even though there is an Argentine town that claims the same). Blumenau is a Germanic town.
http://www.youtube.com/watch?v=XPmMArLN5aA&mode=related&search=
Other towns look just like what you will find in the old towns (tourist areas) of Poland, Lithuania, and Ukraine. Kinda odd to see such influences so far away. It is a very beautiful area. It is also the only area of Brazil that I would feel somewhat safe in. Sao Paulo and Rio are just too dangerous these days to relax in.