I would go with white plantation shutters - keeps your architectural look/lines. You can also select the shutters to have two parts in one panel also for the ones down the bottom - so half way have one part (of one so its not two different ones) you can shut completely and the top part you can adjust to still see but with complete privacy in the bottom (you could have in the morning when lying in bed), or you open and shut them around the same amount. I did that in my hall way so that I can completely close the bottom half but the top part of the same shutter I can open slightly for the light etc etc but still have privacy. Shutters give you so many possibilities for privacy, lighting etc depending on the person.

Something to consider with roller blinds- The blockout ones can really block the airflow in Summer, and if you do leave the louvres open, the slightest breeze will cause the bottom rod to bang against the window frame. You can fix them so they don't do this, but again you have the reduced airflow.....which is why you have louvres in the first place. We have the same problem. My son's bedroom. He seems to have adjusted to no window coverings. Luckily we have no privacy issues.

yes...but windows need to suit the room inside, orientation and outlook and looking at your photo you may find that it's more cost effective to remove three small windows and replace with one big window that may be all sliding or have sections of fixed glass and sections of awnings or double hung windows either horizontally or vertically...but do you need every window in the original size and location? ..take photos from every side of your house and make a numbered list of the sizes of all the existing windows and you can discuss with a window supplier to get an idea of costs BUT windows are such a vital feature of passive solar design that you should take this opportunity to rethink every window....does every window suit the purpose, are some windows too big, too hot inside, in the wrong location, not private, missing a good view or cooling breeze...check yourhome.gov.au for advice to get the best results for such a major investment and you will need skilled help to remove and install so also time to consult a builder

Different rooms will need diff solutions. You can hang blinds on the windows themselves or mount blinds or curtains on wall above window, just make sure they are mounted out far enough for the window to be tilted open and with curtains that you can draw them back clear of the window to allow it to swing open. Looks like you have wall space in the living pictured.