I rather liked Paraguay when I was there a few years ago. It's a very non-traditional tourist destination, but there's certainly some stuff to see there.

As mentioned before, Asunción isn't the most sight-intensive capital city in the world, but it's pleasant enough to hang out in for a few days. I stayed at the Hotel Chaco downtown - I found it to be a lovely, 4-star hotel that had some traditional, quirky charm. It's by no means an international chain business hotel, but the location right in the city center was great, and I found it quite comfortable.

Do you speak Spanish (or Guaraní )? For me, the best part of Paraguay was just relaxing, wandering around on my own with no other tourists to be seen, and interacting with the locals.

The main traditional tourist highlight would be the Jesuit ruins in eastern Paraguay, which have been mentioned. I took public transit from Encarnación to the two most known reducciones - Trinidad and Jesús. At Trinidad I had a guided tour all to myself - I think there were maybe two other tourists at the site the entire time I was there.

I was only in Paraguay for about five days, so I don't know it all that well, but it was definitely enjoyable.