You want the rods even all around, so wherever you mount the rod above the windows, you want the rod above the door at the same place. Might be easier to measure down so you get them in the same place.

Curtains generally look best if they are hung high and wide. Stock sizes of curtains are usually 84" or 95" long. Measure up from the floor to figure out where 84 will land in relation to your window. If 84 is too short, you'll have to use 95. 95 might be a little cramped by the ceiling but they will look better than panels that are too short. If you are crafty, you could hem the 95s or add some fabric to the 84s. Make sure your curtains appear wide enough to cover the windows even if you don't plan on closing them. You don't want them to look too skimpy. Here is a good graphic about curtains. I like all the advice except the pooling suggestion.

Folks......... either way? To get a look like the pictures? Is $$$$$$$ and custom. The op doesn't have the advantage of a fabulous view. A translucent privacy treatment, AND custom sheers are the answer. It isn't a quick trip to Bed, Bath Beyond............: )

I don't think it would look odd to have them 2/3 of the way up, but I don't think it would accomplish your goal to have complete privacy at night. Particularly because you said the ground slopes up toward the neighbor's house, the 1/3 opening above the tiers still leaves you vulnerable to peepers, whether the peeping is intentional or not. I'd consider hanging panels that you can open during the day and close at night.