I would put inside mount short curtains in each sash:

Your room looks like it has an arts and crafts influenced interior and it's appropriate to do an inside mount to display both the woodwork and the leaded glass. It doesn't need to be in the arts and crafts style, but simple white semi sheer would be appropriate.

The contemporary rules for drapes or panels don't really apply to your windows.

As above, a long tension rod and short cafe curtains will be fine. The ones with rings slide more easily. Rings can be clip on or sew on. There are many 36" short curtains on amazon.

Do you actually need any covering there at all? Beautiful window and view!

My mother had a similar problem in our DR in our St Louis early 20's century house. She had stationary side panels made that had the rails on the wall. She then had identical curtains made that drew and were window-sill height (avoiding that radiator). It looked quite nice but she really didn't need the ones that could draw.

Here's another vote for a tension rod mounted inside the trim, under the leaded window, and café curtains hanging to the sill. Love the window!

In order of what I like: no curtains, café length sheers on tension rod, café length sheer on tension rod with floor length dummy panels on each side. Those are also in order of expense.

Many thanks for the ideas! - we hadn't contemplated these short cafe curtains - we need the privacy, but may not need the full length, we are not in a particularly warm part of the contingent.

If anyone has seen other minimalist pictures of these types of curtains that might be suited for a 1910 craftsman house - with a relatively minimalist approach that would be very much appreciated.

Since the view isn’t that great you might consider other glazing options to provide privacy instead of window treatments, like stained or leaded glass.

For example:

Live with it as it is through all 4 seasons. You will then figure out what you need and not waste money. It's not your bedroom or bath - just don't run naked through this room!

If there is any potential for prying eyes after dark when the lights are on, then, for safety sake, you should have the option to cover the windows when the lights are on. You may also want/need light control.

There is a new kind of plastic mini-blind (available at WalMart) that have NO string. You literally lift them up and they stay up; pull them down and they stay down. You could hang a narrow white painted board across and attached to the ceiling beams in front of the window against the window trim, without actually affixing it to the window trim, and hang your blinds on that.