I doubt a new plant in Brazil can cover all of Apple's production needs, the operations in China are HUGE. And then there's the possibility Brazil will start squeezing Apple too, they aren't the same as Communist China, but they have some issues of their own. I'd like to see Apple diversify its operations over multiple counties...hopefully none of which are China, eventually.
However, Apple is also selling an increasing amount of devices in China, and not having their manufacturing there to use as leverage could hurt their ability to conduct business there. Right now that's the only thing they can use, otherwise the Chinese government would dick them around just like they do everyone else. They may still lose this Proview case but if they weren't employing hundreds of thousands of Chinese, they would almost certainly lose as the Chinese government and courts tend to protect their own and stick it to the West whenever possible.