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.