Interesting use of "LOCALHOST" - usually localhost triggers socket connections for MySQL, but it's evident from the debug log that the capitals result in it being correctly translated to 127.0.0.1 here!
The debug log you posted looks absolutely fine from a SSH connection point of view. In particular the following lines:
> debug1: Authentication succeeded (keyboard-interactive).
> debug1: Local connections to LOCALHOST:53469 forwarded to remote address 127.0.0.1:3306
> debug1: Connection to port 53469 forwarding to 127.0.0.1 port 3306 requested.
> channel 2: open failed: connect failed: Connection refused
So the SSH connection was established, a local port was set up as the forwarding port; then the MySQL connection was correctly attempted to the specified port. The server, however, rejected the connection to port 3306...
I think if you tried a command-line `mysql` connection attempt through a SSH tunnel, you'd see the same behaviour. What intrigues me however is that you say SQLyog and other software works fine - is that from the same IP address, using a SSH tunnel? If so they'd be doing this in exactly the same way, and would appear to be connection to port 3306 from the server you're SSHing to (normally 127.0.0.1 for the same machine, as per your log).
You also mention MAMP - are you saying connections to this also fail? Or are you using SSH connections to another machine running MAMP?
Rowan
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