"Couldn't sleep and now I have ssh-method.c working. Going to clean up the code a bit (still will be a bit hackey when I turn it in) and also add a password dialog box so you won't have to put your password in the uri."
Alternatively, you could just ensure that you detach from your controlling tty to work around the SSH bug, and then SSH will happily invoke ssh-askpass for you if it needs a password/passphrase/skey/etc.
See how Evolution does it when invoking SSH.