I also have a window like that in our shower - it may, but doesn't normally get wet from the shower. I have put in a thin venetian blind in white (made from plastic) very cheap, under $5. I am in process of making an puffy austrian blind to hang above the window, for a bit of colour I am making it from a shower curtain). It will be there for looks, I may never pull it down. The venetian gives privacy and blocks the light a certain amount.

you will probably obtain the best advice from a glass manufacturer who specialises in kitchen splashbacks

Hi JC! We specialised in soft window furnishings and think a nice soft sheer would be a lovely touch to your master bedroom. Since it is facing South, there won't be much sunlight coming into the room so adding a light sheer will give you great privacy without blocking out any natural light. If you would like us to put forward an indicative quote for you, get in touch with us! - Cass (The Gezellig Room)

Adair’s have a wonderful range of boho style cushions and doona covers. https://www.adairs.com.au/search/?q=Boho