It's a little tricky to see what's happening here, but I believe the lower half of the windows have either a cellular shade or window film on them. So you can still see outside but you get privacy too. This idea could work for the kitchen banquette.:

Why I love the color gray!

Greyscale living room:

Finding Your Personal Touch

The Renovation of a Century-Old Denver Bungalow:

Dreamy Bathrooms!

Subtle or Bold?