I'm rooting for Paraguay, but Germany is going to semifinals for sure. It usually doesn't matter how bad luck they have before the tournament... they could miss 23 of their intended squad and still win everyone 1-0, except Brazil which is going to win this tournament.
I think Dunga is extremely intelligent man who doesn't make popular choices. He just makes the right choices. He is going to be a great coach and he has all the ingredients to win. I see absolutely no weakness in Brazil team, except slight inexperience.