Owing nothing on the house is always better than having to pay mortgage unless of course it makes one destitute, which would be a bad decision. .

If owing nothing on the house means one has no liquid money and is struggling, then paying the house off wasn’t a good idea and the issue is likely buying a house above one’s means.

Many people are “house poor”. Can’t afford anything else but are proud they have a house. In those cases people are trying to live above their means. It’s never a good decision. If owning a house makes you poor, then your house isn't affordable. Buy smaller house in a cheaper area.

So the issue isn’t not owing nothing on the house, the issue is a stupid decision to live above your means