Lines really aren't much of a thing: they are a single keypress, which generates a newline character and some autogenerated indentation from your editor. There's no real difficulty in breaking things up across two lines versus typing any other extra character (this touches on another issue, which is that I am of the opinion that the concept of code brevity estimation by line count comparison is fundamentally flawed, as code with fewer wider lines is often just cumbersome to type as code with more narrower lines).
That said, please consider the following:
data Color = Red | Black
data Color { Red; Black }
data Color = Red | Black | Green
data Color { Red; Black; Green }
I think the brace + semicolon-newline style actually compares pretty favorably on single-line width (it wins out on line width to an increasing degree as the line gets longer, which is important). However, it is visually more complex, which matters a lot for shorter lines. For this reason, I think that allowing both syntaxes would be ideal. The pipe-based syntax could be encouraged for single lines (newline-termination would sidestep block-end inference issues), with the curly brace based syntax being encouraged for multi-line definitions. There is a slight disadvantage in that now a user would have to know both syntaxes, of course.
edit:
Of course, since Pyret's syntax requires that ADT parameters be specified in parentheses, you can actually omit the pipes in single-line mode, too, and opt to use space-juxtaposition.
