Really short post, on a something that cost me more than 2 hours. I had a hard drive fail, so I had reset servers ssh key to my machine. No matter what, I kept getting prompted for my password.

solution was going through this here: https://unix.stackexchange.com/questions/26371/ssh-prompts-for-password-despite-ssh-authorized-keys

Check ~/ssh folder permissions in client and server machine.
Check /etc/ssh/sshd_config in the server to ensure that RSAAuthentication, 
PubkeyAuthentication and UsePAM options aren't disabled, 
as they are enabled by default with yes. 

I had PubkeyAuthentication turned off, simple as that.