Maybe you forgot to specify a port. I wouldnt expect the connector to use a socket tough if none is specified. My guess is this isn't your entire database.yml file and there is a socket config in there.
development:
adapter: mysql2
encoding: utf8
database: domain_dev
username: xxxx
password: xxxx
host: mysql.wyw.mydomain.ca
port: 3306
pool: 5
timeout: 5000