Depends on what you are looking for. It doesn't have the spectacular landscapes of Northern Scandinavia, or the variety of historic remains you find in some cities in Germany, and it's not competition for London or Paris when it comes to nightlife or shopping. What it does have is a small historic town centre that's easy to navigate on foot, some interesting sights and a relaxed ambiance.
I'd rate it "a nice place to visit" not a must-see destination
no, south America is not a overrated travel destination.
No.
No
No
No
It's certainly an overpriced travel destination.
No
Yes
yes, it is
yes
yes
YES