Solano Lopez conquers Argentina

What if instead of attacking Brazil and Argentina at the same time, Solano Lopez focused in unifying La Plata under his umbrella? If Solano was more shrewd, could he ally with the Argentinian Federalists to overthrow the Buenos Aires elite and unify Argentina and Paraguay under his command?

This would be something akin to Lukashenko's plan for Russia in the 90s, but much more violent, of course. Brazil would naturally be opposed to the full implications, but Rio wouldn't necessarily see the danger Paraguay posed and could see Solano's war as a way to weaken the much stronger Argentina with a gruesome frutiless attrition war, so I could see the Brazilians allowing Solano to act at first. We only know how tough of a nut to crack Paraguay is because we have the hindsight of the Paraguay War.

Would he change the Argentinian capital to something closer to Paraguay, like Rosario?

Considering Paraguay's performance during the Paraguay War, how would they fare in an offensive war down the Paraná River against Argentina only?
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