I think the 529 plan is still the best. Hopefully education might cost less in the future, but I don’t think the best education will ever be free (or it won’t be very good!). So keep saving for the future. Remember, the money can be used for something else by paying taxes and a 10% penalty, if there’s another urgent need.
Use your state plan, if you get a deduction on state income taxes and if the performance has been good. Check the latest performance ratings of 529 plans at www.SavingforCollege.com