Indeed, the swap is not mounted by default. Also, swappiness is set to 1, so even with the swap partition mounted, the card should not be written to most of the time unless it is necessary.
As for the 122 MB of memory, if this is the total memory (as opposed to free memory), I expect you're probably using the 128 MB start.elf (the default is 192 MB on the latest Debian image). If you'd like more memory, try the 192 MB or 224 MB start.elf (note: the 224 MB one will restrict what the GPU can do – e.g: it cannot play 1080p h264). To change the amount of memory, delete start.elf, and copy one of the other arm*_start.elf files to /boot/start.elf
Check out cool stuff I'm doing, e.g my PIC Programmer for the Raspberry Pi: http://www.techmeology.co.uk/rpipic/