Eli and I recently patched a problem with pixel position reporting with inline images (which I had discovered in a large org buffer with latex-preview). With this patch installed, now on master as of this evening, org-display-inline-images freezes emacs when a larger image is included in an org file, if org-indent is enabled.

I’ve confirmed such images are fine in regular buffers by text-property or overlay, so I suspect this is a “revealed bug” in org-indent or the element cache.