There are many options for changing the look of your house. I would replace the windows with larger windows. You can put in tall windows and keep the same width. This doesn't require any structural changes. If you widen the windows you will need a structual analysis. However, if you want to really change the look, you could widen the openings and put in french doors on each side with a new balcony for each, or a balcony across the front. The balcony can be very shallow 6" or deep enough for a chair. It can be cantelevered. I would go for a contemporary look. I found some images to share for inspiration. If you decide to make the changes, I suggest that you hire a local Architect to help you acheive something really nice..........Your house has a lot of potential.

I could see doing something like French doors with opaque glass so the lite could come thru to the rest of the house. Also double French doors would allow you to open the area up completely whilst doing laundry. You could even leave everything where it is (dryer) and build some storage on the left side. I would image the sink would be very useful - I'd be lost without mine in the laundry room.

I would continue with frosted glass like the door on all the windows because the view of the other house. Not sure where you live, but you can get a frosted window film that you install yourself. In bedrooms and lounge, depending on your style, you might like a woven roman shade with silk drapes.

Are they closet doors? What about the louvers don't you like? Replacement costs are probably cheaper... http://www.lowes.com/pd_201659-32998-41065_1z13eny__?productId=3040848&pl=1&Ntt=sliding+closet+door