Couple of pics would help. As for " keep the smaller window, frost it and have the builder remove the inside trim then completely drywall over the window keeping the look of the window outside but losing it inside? Will it look half ass and dickie?" Yes.

I wouldn't drywall over the window. Take a look at the options for recycled brick, they may match better than you think.

As you rethink adding a fixed window, consider either a fixed window that is the long horizontal kind over the shower/tub surround and/or an octagon one with stained glass for the dressing room. https://www.google.com/search?q=images+for++octagon+windows&biw=1366&bih=673&tbm=isch&tbo=u&source=univ&sa=X&ved=0CCIQsARqFQoTCOaJ69fb28gCFcYVPgodogsLDw You could add a couple of pairs of shutters to create a pair of faux windows that look as if the shutters are closed. If you don't want a window that opens on that wall, you might consider having a fixed window and shutters that are louvered to let in some light while protecting your privacy. You might also consider a faux gable with a faux window, perhaps functional as part of the venting system for the bath.

We have a 900x900 shower and it's plenty big enough. Neither of your proposed layouts looks that great, to be perfectly honest, sorry! In the first layout, you could improve it quite a lot by swapping the toilet and vanity (centre the toilet under the window on the bottom right of the picture if possible), and having the shower door on the other wall (beside the door). Then, you could have a towel rail on the wall beside the door (i.e. behind the door when it's open), which would be accessible from the shower but hidden when the door was open. An 800x1200 shower might be a good size for your space. You'd have to choose a toilet that doesn't protrude too far, plus a narrow vanity. With that layout, you could have a long but narrow wall-hung vanity, with a big mirror covering the wall between the windows, which would make the room feel bigger and would give a good amount of storage. Also, you may find this helpful: http://www.houseplanshelper.com/small-bathroom-floor-plans.html?utm_content=buffer4aa20&utm_medium=social&utm_source=facebook.com&utm_campaign=buffer