Originally Posted by kbp
.. why? that's the easiest solution - try 'ssh-copy-id'
Thanks for the response, the problem is this is not an 'ordinary' Linux box but a router with OpenWRT.
The problem is Catch 22.
The first problem was that the remote box didn't respond:
debug1: Offering public key: /home/myuser/.ssh/id_rsa
debug2: we sent a publickey packet, wait for reply
I set up a temporary other SSH channel and figured out the problem:
 Aug 05 19:26:18 /tmp must be owned by user or root, and not writable by others
Okay so I set 700 on /tmp, then the PKI auth works as a charm - but as my standard user don't have the access to the homedir thus cannot login
 Aug 05 17:30:02 exit after auth (myuser): error changing directory
The /home directory is /tmp on the box for both root and other standard users.
I can hack around to move my user to an another location - but well then the current password login looks still less troublesome.