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Should I keep my image as an American company selling an American product or should I get more in step with the Brasileiros? Should I continue to use photos of Americans or should I use photos of Brazilians?
Would they be pleased to see local 'flavor', or would they fully understand that it was a local language version of a US site, and find it patronising?
Prabaly best to ask the Brasileiros! As for title, I'd (almost) definitely go with the language: Brasil.
A local domain name has a few SEO benefits that you wouldn't get with a subdomain. It also shows a more direct commitment to the local market.