In Why is there no base class in C++?, I quoted Stroustrup on why a common Object class for all classes is problematic in c++. In that quote there is the statement:
I think he was going along the lines of not being able to store it in a base-typed variable. You're right in saying that you can store it on the stack if it's of the derived type because there's nothing special about that; conceptually, it's just storing the data of the class and it's derivatives + a vtable.
edit: Okay, now I'm confused, re-looking at the example. It looks like you may be right now...