He openly admitted to the press that he felt responsible for the loss and blamed himself. He faield to prepare them for the world's stage and as a result they froze and embarrassed themselves. He may not have lead them to a victory, but he could have prevented a 7-1 loss.
As the primary tactician, the coach definitely has to bear some of the blame for Brazil's loss. He's not the only "guilty" party however. Brazil was completely outplayed by Germany as the score clearly shows. Brazil had a good first 5-10 minutes and were playing aggressively, with energy, but after they let up the first two goals, they sleepwalked through the rest of the game.
No, Brazilian fans should not blame the coach for the embarrassing loss, because they credited the coach who got them that far. Everyone loved the coach up until this game. Germany just had a better day than Brazil did. It happened. It doesn't mean that there is anyone to blame, especially the coach.
I do not think the Brazilian coach should be blamed for the loss. The entire team is at fault. It is a game and sometimes there are just better opponents that you play against and unfortunately lose to. They can use this devastating loss as a learning tool for future games as well.