This seems like a prime candidate for a nice bottom-up blind, so you have privacy but still get sunlight. It's not too big of a window, so you might be able to invest in a custom piece that allows you to pick a beautiful fabric which would add a welcome softness to the room. I would not suggest curtains, since I feel like the dangling fabric would be a nuisance when you want to take a bath.

The look of this bathroom is definitely suited to the upscale look of Hunter Douglas Silhouette shades. It is a fabric (many choices) that rolls up in it's header, out of the way. It can be cordless and can be closed completely, vanes open part way for some light, or completely open.