Yeah, the whole "Europeans can't go tropical" trope is pretty badly overstated. Not that it's entirely without reason, but it gets over-extrapolated WAY too much as a thing, especially once mitigators like @Soverihn mentioned are factored in (NE-to-South Brazil, central-highland Mesoamerica, and trade-wind-adjacent parts of the Antilles demonstrate this). It is a shame that slavery seems as likely (or more) to spring up in Virginia here. However, I'm still holding out hope that an OTL post-1660 hard "white-everyone else" line doesn't evolve, since at least that way some folks could dodge remaining in bondage. Plus, a white-dominant English colony is boring.
While I've never been, what I find fascinating about Northeastern Brazil is the contrast in landscape it seems to offer, based on pictures and video. It seems that along the coast, you have what appears to be a very Caribbean-esque strand of beaches and tropical woodland (with consistently flowing rivers to avoid mosquito vectors to boot), but as soon as you go a few dozen kilometers upland you might as well be in Arizona. Hopefully I didn't get the wrong impression.
Excellent point. To add to previous comments as well, the early years of the colony lacked the sort of infrastructure to mitigate what disease vectors there were. Frankly the English had no frame of reference at all for life in a tropical , and then arid, environment. OTL Virginia is much closer to England in climate than ATL Virginia : P
Slavery is a economic fact of life. Colonies in Brazil, regardless of patron nation, are exploitative to the extreme. The Arabs are establishing cash crops, the Dutch are, the French / Spanish, and the English. Cotton, sugar, tobacco are, like OTL the biggest exports. Also hardwoods especially by the Arabs. Like OTL this will end up with a large slave african population in European Brazil. Distinctly unlike OTL you have a already existing, multicultural population just nearby which is going to affect things. By this point New World Arabs are a creole of Old World Arabs, Iberians (Arab or otherwise) Native Americans and small Black African, Western European and Berber populations. Arabs set the cultural cues for life in the American tropics, and as hostilities ease between the Virginia colony and its northern neighbors cultural mixing will lend a distinctly Islamic flair to rural colonial English society. Do not expect mosques to pop up in a elegant southern style across grand ol Virginia but do expect different dress, phrases, trade pidgins, intermarriage between English men and mixed-race locals, etc. Many bring their families to settle in Virginia but on the frontier it is very much a bachelors game, and as anyone who has used internet dating knows single men will consider any possibilities.
As for long-term race relations, the jury is still out on the question.