Heh, I grew up in the days after they renamed it "peach" but somehow independently figured out that was the closest they had to caucasian skin color so I used it. Or if I didn't have that crayon I'd just draw black people.
I remember in art class in 4th grade, a friend of mine drew a person with a black crayon (he was from Nigeria). I was completely baffled and asked him why he didn't use flesh color.
I guess it's kind of nice how ignorant I was of racism. On the other hand- come on, dude!