I have gone to a 'purist phase' where I did not use any pedal either. This was a great learning experience as I used to be a real pedal pusher
One should certainly be able
to play Bach without pedal, without thinking it sounds dry or ugly, or both. But recently I feel more inclined to add a dash of pedal here and there, sometimes to aid legato (where it's hard to achieve otherwise), and sometimes for reasons of sound quality, like in the WTC I C major and B flat major preludes, which I think sound rather silly without pedal.
But one has to very careful and judicous in Bach pedalling, There is nothing worse than over-pedaled Bach. I think it can not be heard much in my recent Bach recordings (at least nobody niggled about it
I also make grateful use of the sostenuto (middle) pedal to hold the low A during the last bars of the WTC I A minor fugue. THere's no other way to do it. This is the only place I know where Bach writes something that is actually impossible rather than simply damn difficult. I wonder what instrument he had in mind when writing it.