Imagine a language which doesn't allow multiple value constructors for a data type. Instead of writing
data Color = White | Black | Blue
we would have
data White = White
data Black = Black
data Blue = Black
type Color = White :|: Black :|: Blue
where :|: (here it's not | to avoid confusion with sum types) is a built-in type union operator. Pattern matching would work in the same way
show :: Color -> String
show White = "white"
show Black = "black"
show Blue = "blue"
As you can see, in contrast to coproducts it results in a flat structure so you don't have to deal with injections. And, unlike sum types, it allows to randomly combine types resulting in greater flexibility and granularity:
type ColorsStartingWithB = Black :|: Blue
I believe it wouldn't be a problem to construct recursive data types as well
data Nil = Nil
data Cons a = Cons a (List a)
type List a = Cons a :|: Nil
I know union types are present in TypeScript and probably other languages, but why did the Haskell committee chose ADTs over them?
Haskell's sum type is very similar to your :|:.
The difference between the two is that the Haskell sum type | is a tagged union, while your "sum type" :|: is untagged.
Tagged means every instance is unique - you can distunguish Int | Int from Int (actually, this holds for any a):
data EitherIntInt = Left Int | Right Int
In this case: Either Int Int carries more information than Int because there can be a Left and Right Int.
In your :|:, you cannot distinguish those two:
type EitherIntInt = Int :|: Int
How do you know if it was a left or right Int?
See the comments for an extended discussion of the section below.
Tagged unions have another advantage: The compiler can verify whether you as the programmer handled all cases, which is implementation-dependent for general untagged unions. Did you handle all cases in Int :|: Int? Either this is isomorphic to Int by definition or the compiler has to decide which Int (left or right) to choose, which is impossible if they are indistinguishable.
Consider another example:
type (Integral a, Num b) => IntegralOrNum a b = a :|: b -- untagged
data (Integral a, Num b) => IntegralOrNum a b = Either a b -- tagged
What is 5 :: IntegralOrNum Int Double in the untagged union? It is both an instance of Integral and Num, so we can't decide for sure and have to rely on implementation details. On the other hand, the tagged union knows exactly what 5 should be because it is branded with either Left or Right.
As for naming: The disjoint union in Haskell is a union type. ADTs are only a means of implementing these.