Alrighty, so here's how you can get 256MB of RAM in the emulated Indy. Go into /src/mame/drivers/indy_indigo2.cpp and comment out line 216. Go to line 246 and change it to "map(0x08000000, 0x1effffff).share("mainram").ram().w(FUNC(ip24_state::write_ram));" and then go to line 252 and change that to "map(0x20000000, 0x2fffffff).share("mainram").ram().w(FUNC(ip24_state::write_ram));" and then just recompile it with "make SOURCES=src/mame/drivers/indy_indigo2.cpp REGENIE=1 TOOLS=0 DEBUG=0 OPTIMISE=3 -j5" (with -j being your number of physical cores plus 1).
I have no idea how stable this is once the OS/programs start to write into that memory. All I know is that it boots into the desktop just fine and programs open so that's a start.

R14k 600MHz, V10, 2GB RAM, 73GB disk, IRIX 6.5.22