Since there were no exact answers to my question, I made some investigation why my code doesn't work when there are other solutions that works, and decided to post what I found to complete the subject.
As it turns out:
"ssh uses direct TTY access to make sure that the password is indeed issued by an interactive keyboard user." sshpass manpage
which answers the question, why the pipes don't work in this case. The obvious solution was to create conditions so that ssh
"thought" that it is run in the regular terminal and since it may be accomplished by simple posix
functions, it is beyond what simple bash
offers.