I still think patching the KS will be needed to support more than 128mb of ram on that bus. From reading posts on the zorram and DKB and other large Z3 memeory expansions, there are a lot of bugs in expansion.library that will require fixing to make things happen easily.
expansion.library wouldn't be necessary as I don't think you can autoconfig from the local bus, a resident module in rom that adds memory to exec directly would probably do it. Or you could add the extra memory in a command called from user-startup.