I think the reason they're rarely used nowadays is that they're not the current fad, although glass block is making sort of a feeble comeback lately. You see more of it around than you used to (in new construction, not old '50s buildings).
I agree about the basement windows. They are permanent, look good and are pretty burglarproof. Same plusses would apply to a garage. And you could hose them down periodically, inside and out, without hurting anything.
I just did a bathroom glass block window in a house I renovated. If you do-it-yourself, they're not that expensive, but you do have to know how to lay brick (same as laying block) or, if you're an accomplished DIY-er you can fake it pretty well. Google "Pittsburg Corning glass block" for info and tutorials. There's also youtube videos on laying glass block.
Home Depot has all the stuff (the block, white mortar, spacers, reinforcments).