Yeah, that's fricken creepy. Even though I can see a practical use for it... "I wonder what the kid is doing in there..." but if you turn the handle to see, they'll stop being quiet and leaving you alone and come bother you instead. lol. That way you can check without risking that!
But yes, still totally creepy. Makes me think of a dirty old peeping Tom renting out his rooms to young uni students... and having a good old creep. EW!