Now's a good time to pay off any debt. I took a chunk of my non-tax-deferred cash, which was earning almost nothing, and paid off my mortgage -- an instant 4.5% return. The rest I, like you, am saving for the next crash. I loaded up when the Dot.com bubble burst in 1999 and again when the market crashed in 07-08, and did very well. I call it the "Mr. Potter (It's a Wonderful Life) Strategy" -- buy when everyone is selling; sell when everyone is buying....
I have a bit of a contrary position on debt. I'm holding cash and debt, but its rate dependent.
I just refi'd at 2.8% and think that I'll be making big money on that in a few years, as inflation rocks 10%.
I am eyeing a small bit of debt that is at 6.5% though, and thinking I'll just pay it off.