I think Bruce has an interesting point: if you believe that house prices will appreciate, then your "investment" in your home will increase in value. Whatever rate housing goes up, yours may track up with that.
If your alternative is to put the money in a bank account, you probably won't make as much in interest on that "investment" as rising house prices would yield, but there is little risk to your money in the bank. If, for example, house prices go up an average of 5% next year, then that would be better than an increase of 2% in a savings account balance. Besides, you have to pay taxes on the savings interest, making it even less of a return.
Having no mortgage payment to make does put the burden of paying taxes and insurance directly on you. You won't have a loan servicer to collect a small amount each month and then pay the bills on time for you. You will have to set aside the money and pay the insurance on or before the anniversary of your purchase, and pay the taxes to each goverment body that bills separately in January. There could be a single bill or 2 or 3 bills to make sure get paid.
The advantage of cash is that there is only a short wait between contracting and closing and low risk to the seller that you won't close. The seller also might be more amenable to giving you a discount on the price since you won't ask for closing costs for a mortgage loan. No, they won't go down 10-20%, but you might get a few percent additional off the price or maybe more. And, if you're a first time homebuyer, you can get the 10% up to $8,000 tax credit, too.