In my region of the World we all wave, regardless of bike. Indeed, we even get greeted by older folk sitting outside their homes when we ride through villages. Portugal is a friendly place.
Shave? Yep, I do, even in Winter. Our Winters are still very Sunny and warm so I don't wear bib's often. Here, a warming cream on the shaved legs suffices. I race so massage lotion is easier to apply and rub in on shaved legs too. Still applicable in Winter for my circa 400-500km per week training. In Summer my shaved legs help me feel cooler in the heat; the sweat wicks off faster it seems.
I never shaved when I wasn't training for racing so when I stop that and revert to being a social cyclist I'll be letting the hair grow back.