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Lima has quite a few interesting things to see and is worth at least a few days look if possible. It can be a little unsafe, though.
Santiago is a very nice city with a charming colonial center, nice views of the mountains, and in general is safe and the people very friendly. I use it as an occassional getaway from Buenos Aires.
Speaking of which, you (wisely) failed to mention Aerolineas Argentinas, which in my opinion may be THE WORST airline in the world. It's flights are perpetually delayed or canceled, and that's when things are going well. During a very frequent strike, you can forget anything taking off.
Agree with you 100% about Casablanca, though!