From someone who's best option may be IU-Indy (currently WL), I can honestly say that after visits and what I can gather from research and being in the community - it honestly doesn't seem to matter if Indy is ranked high T2 or low T4, alumni are so entrenched in the legal community here that job prospects will always be good for IU-Indy grads in this market.
Although, based on reactions I get from people outside of the legal profession, IU-Indy still is regarded somewhat poorly - taking on the rep of IUPUI in general - as some sort of night school or "YMCA" type law school. Everyone always seems surprised when you tell them it's one of the better schools in the region.
I more-or-less second what MidWesternPleb has said.
I have heard that Indianapolis firms want graduates from IU-Indy because they already know the city and are more likely to have ties to the city, making IU-Indy graduates a better hire than someone who went to IU-Bloomington. Not to mention the internships are likely to be better (or more relevant to Indianapolis firms) since they are in the city.
I have also heard that IU-Bloomington is better if you plan to work outside the state, since it is more highly regarded nationally.
I haven't visited either, however I attend IUPUI, and I enjoy the professors here. I have the benefit of avoiding the party-crowd crap that non-commuter schools are plagued with, and there is a greater mix of traditional and non-traditional students. I tend to like that, but it's not for everyone. Attending IUPUI (or IU-Indy, if I am accepted there) allows me to own a reasonably-priced home in a city I plan to stay in and attend school without a long commute.