IANAL.
My understanding is that it comes down to a "reasonable person" doctrine - i.e. would a reasonable person consider the location to be private.
Another way of thinking about it is if there is a reasonable chance that you will be seen by people engaging in normal everyday activities.
Personally, I would say that peeking through a small gap in the curtains would not qualify as normal behavior. Someone doing that is clearly snooping.
On the other end of the spectrum, having sex in front of a window that fronts a public sidewalk with no curtains would pretty clearly be public indecency.