I would bite the bullet and replace the window with a frosted glass pane. Any sort of window treatment on top of the glass blocks will look out of place.

I agree with Sabrina above, that a frosted glass window is much preferable . Just make sure it is TEMPERED to meet code in case one were to fall against it, and depending what part of the country you are, I'd probably recommend spending the extra 20% to get it triple paned, so that it isn't so cold when you're taking a bath in midwinter. The good news here is that fixed windows are far less expensive than operable ones. Good luck!

Amy: depending on the view out there, it can just as easily be a clear glass window; the shutters will take care of the privacy issue. And you can also do plantings outside to both enjoy and help with privacy. Here's one like yours where the view was of the neighbor's garage, so we chose to feature a custom stained glass by Judy Gorsuch Collins, which is spotlit from the outside at night1