The Geek and I have never been bothered by the size of the bathroom window. Its curtain-less state doesn't bother us either -we know no one can see in- tho' it has made some of our guests a little nervous.
The Geek decided to remedy this yesterday using some semi-opaque vinyl to make faux subway tiles on the vinyl cutter at Assent Works.
Thankfully the light in the bathroom is not significantly reduced with this addition. In fact, I didn't even really notice it was there until she pointed it out to me (I was in a hurry to wash my hands and get supper started).
Pretty cool, eh?