Tony Park gave an answer which is pretty close to the truth. The C++ committee basically didn't think it was worth the effort to make unions a strong part of C++, similarly to the treatment of arrays as legacy stuff we had to inherit from C but didn't really want.
Unions have problems: if we allow non-POD types in unions, how do they get constructed? It can certainly be done, but not necessarily safely, and any consideration would require committee resources. And the final result would be less than satisfactory, because what is really required in a sane language is discriminated unions, and bare C unions could never be elevated to discriminated unions in way compatible with C (that I can imagine, anyhow).
To elaborate on the technical issues: since you can wrap a POD-component only union in a struct without losing anything, there's no advantage allowing unions as bases. With POD-only union components, there's no problem with explicit constructors simply assigning one of the components, nor with using a bitblit (memcpy) for compiler generated copy constructor (or assignment).
Such unions, however, aren't useful enough to bother with except to retain them so existing C code can be considered valid C++. These POD-only unions are broken in C++ because they fail to retain a vital invariant they possess in C: any data type can be used as a component type.
To make unions useful, we must allow constructable types as members. This is significant because it is not acceptable to merely assign a component in a constructor body, either of the union itself, or any enclosing struct: you cannot, for example, assign a string to an uninitialised string component.
It follows one must invent some rules for initialising union component with mem-initialisers, for example:
union X { string a; string b; X(string q) : a(q) {} };
But now the question is: what is the rule? Normally the rule is you must initialise every member and base of a class, if you do not do so explicitly, the default constructor is used for the remainder, and if one type which is not explicitly initialised does not have a default constructor, it's an error [Exception: copy constructors, the default is the member copy constructor].
Clearly this rule can't work for unions: the rule has to be instead: if the union has at least one non-POD member, you must explicitly initialise exactly one member in a constructor. In this case, no default constructor, copy constructor, assignment operator, or destructor will be generated and if any of these members are actually used, they must be explicitly supplied.
So now the question becomes: how would you write, say, a copy constructor? It is, of course quite possible to do and get right if you design your union the way, say, X-Windows event unions are designed: with the discriminant tag in each component, but you will have to use placement operator new to do it, and you will have to break the rule I wrote above which appeared at first glance to be correct!
What about default constructor? If you don't have one of those, you can't declare an uninitialised variable.
There are other cases where you can determine the component externally and use placement new to manage a union externally, but that isn't a copy constructor. The fact is, if you have N components you'd need N constructors, and C++ has a broken idea that constructors use the class name, which leaves you rather short of names and forces you to use phantom types to allow overloading to choose the right constructor .. and you can't do that for the copy constructor since its signature is fixed.
Ok, so are there alternatives? Probably, yes, but they're not so easy to dream up, and harder to convince over 100 people that it's worthwhile to think about in a three day meeting crammed with other issues.
It is a pity the committee did not implement the rule above: unions are mandatory for aligning arbitrary data and external management of the components is not really that hard to do manually, and trivial and completely safe when the code is generated by a suitable algorithm, in other words, the rule is mandatory if you want to use C++ as a compiler target language and still generate readable, portable code. Such unions with constructable members have many uses but the most important one is to represent the stack frame of a function containing nested blocks: each block has local data in a struct, and each struct is a union component, there is no need for any constructors or such, the compiler will just use placement new. The union provides alignment and size, and cast free component access.
[And there is no other conforming way to get the right alignment!]
Therefore the answer to your question is: you're asking the wrong question. There's no advantage to POD-only unions being bases, and they certainly can't be derived classes because then they wouldn't be PODs. To make them useful, some time is required to understand why one should follow the principle used everywhere else in C++: missing bits aren't an error unless you try to use them.
